Nissan has told its dealers it will reduce production of two models by around 40,000 units in September and October. The two models targeted are the Frontier pickup truck and the brand's best-selling model, the Rogue SUV.
The aim is to reduce excess inventory and supply, enabling dealers to increase sales and profit levels.
In the case of the Frontier, what's surprising is that sales of the truck are up 17 percent over last year. That hasn’t been enough to cut sufficiently into inventories though, so Nissan is adjusting output.
Sales of the Rogue are down by 4.5 percent in the first half of 2024 compared to 2023.
Automotive News reported that Nissan told its suppliers at the end of last month of the decision to reduce production at its plants in Smyrna, Tennessee, and Canton, Mississippi.
Production of the Rogue has been reduced from five to four days a week, and that will last until the end of October. Frontier production has also lost a day, but in that case it will remain that way until the end of March, 2025.
These have been challenging times for Nissan. In May, the automaker reportedly asked its dealers to sell vehicles at a loss in order to reduce rapidly growing inventories. The company was approaching a 100-day supply of new vehicles.
The decision is said to have hurt dealer profitability this year, but the effort has paid off with inventory levels coming back down to levels nearer to those of the competition. Still, further efforts are obviously required, given the decision to reduce Rogue and Frontier production.
