Nissan Cuts Production Amid U.S. Demand Issues

Nissan looks to be facing a deepening problem in the U.S.

Sources say it cut output by a third at its top Japanese plant this month as it struggles with demand.

Among other things, that will slash production of its Rogue crossover.

The sources say it will now make around 10,000 of the cars for export - or about half what it had previously planned.

But the report comes just days after Nissan said its profits were almost completely wiped out over the April-to-June quarter.

It’s been forced to do big discounts to win sales in the U.S., amid criticism over an aging lineup of models and weak demand for its electric cars.

The company also doesn’t offer hybrids in the American market, meaning it’s missing out on the boom for such vehicles.

Though Nissan has promised a wave of new model launches, analysts say its target of boosting sales by one million cars per year looks in doubt.

Separately, media reports said Mitsubishi Motors is in talks to join Nissan’s alliance with local rival Honda.

Analysts say that underscores the pressure on automakers to work together to develop zero-emission vehicles and other technologies.

A three-way alliance would range Nissan’s team against that led by Toyota, which partners with Suzuki, Subaru and Mazda.

There was no immediate comment from any of the companies involved.

Shares in Mitsubishi Motors surged following media reports that the Japanese automaker is in talks to join Nissan's and Honda's planned strategic partnership.

Nissan and Honda said in March they were looking at collaborating on electric vehicle components and artificial intelligence in automotive software platforms, though they are not planning a capital tie-up.

Representatives for the three automakers declined to comment. Shares in Mitsubishi Motors climbed 6.3% in early afternoon trade. Nissan's stock rose 2.8% and Honda's gained 2.6%.