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Nissan will cut its Japanese production capacity by 15 per cent from next month according to reports out of Japan.

The Nikkei has reported the move that comes just a day after identical cuts to Toyota’s production were revealed in what is fast becoming a trend in the Japanese domestic market.

Nissan will reduce its domestic capacity from 1.35 million vehicles per year to 1.15 million and is expecting to build 1.22 million vehicles in Japan by the end of the 2012 financial year, the Nikkei says.

While Toyota is aiming to maintain a goal production level of around three million units annually, despite the risk to export profitability from a strengthening yen, Nissan is taking the safer option by cutting back further on exports from Japan in a bid to reduce its exposure to the rising local currency.

Japan’s second largest automaker will suspend one of two production lines at its Oppama plant in Kanagawa Prefecture and cease Japanese production of the Tiida, all without any cost to jobs, the report says. The facilities of the suspended production line will be utilised as a prototype line to support the increased production planned for emerging markets in China, Brazil and Russia.




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