Nissan’s global production faced a continued decline in October, marking the fifth consecutive month of decrease, despite a production uptick in Mexico. The sales also saw a global decline for the seventh month, with only the US market showing signs of recovery with the first sales increase in three months.
As part of its restructuring plans to cut costs, Nissan announced the reduction of 9,000 jobs and scaling back manufacturing capacity. Alongside these measures, the looming threat of US tariffs poses a further challenge to Nissan’s operations.
In October, Nissan’s worldwide output dropped by 6% year-on-year to 290,848 vehicles. Production in the US and China both experienced a 15% decline, while the UK saw a sharp 23% decrease. Japanese production also fell by 4%. In contrast, Mexico emerged as a bright spot with a 12% production increase to 70,382 vehicles, making it a significant manufacturing hub for Nissan globally.
Despite the overall production decline, Nissan witnessed a 13% increase in vehicle sales in the US in October, driven by strong demand for the compact sedan Sentra. However, the positive figures from Mexico could be at risk due to potential US tariffs.
US President-elect Donald Trump’s proposal to impose a 25% tariff on imports from Canada and Mexico has put Nissan on alert. With around 300,000 vehicles exported from Mexico to the US this year, Nissan CEO Makoto Uchida is closely monitoring the tariff developments.
While sales also rose in Mexico and Canada, significant drops in China and Europe contributed to an overall 3% decrease in global sales for Nissan. The company continues to navigate through various challenges in the global automotive market while striving to maintain its competitiveness and adapt to evolving industry trends.
