Ailing U.S. Economy Prompts Nissan To Cut Auto Production At 2 Plants In Japan

October 21, 2008 11:10 a.m. EST

Tokyo, Japan (AHN) - Slow car sales in the United States have prompted Japan's third-largest automaker, Nissan Motor Co., to announce it will cut production at two plants in Japan.

It will cut production of 37,000 units of its large Murano and Rogue sports utility vehicles and 28,000 units of its Infinity brand luxury cars meant for export to the United States.

Nissan sales in the U.S. dropped 37 percent in September compared with a year ago as the world's largest economy slowed.

Production cuts at Nissan's factories in Tochigi, north of Tokyo and its plant in Fukuoka, in southern Japan, will last for five months from November to March. The company will lay off some temporary employees, according to reports.

Last week Nissan cited weak demand in announcing it was laying off 1,680 workers in Spain.