Drooping U.S., Global Demand Causes Nissan To Make More Cuts

December 17, 2008 12:08 p.m. EST

Tokyo, Japan (AHN) - Drooping demand for new vehicles in America has added to a continued drop in global demand for new vehicles and is causing Nissan Motor Co. to announce more cuts in production.

Nissan officials said Wednesday they will lay off 500 temporary workers in Japan and cut production by 78,000 vehicles to avoid a global buildup of excess inventory.

Nissan shares closed 4.1 percent lower in Tokyo.

Japanese automakers Toyoto and Suziki have also cut production and the American Big Three automakers are waiting for a loan package from President George W. Bush to help them get through this period of lower global demand for vehicles.