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Nissan Slows Output After U.S. Demand Drop Led to Bloated Supply

  • Carmaker says it was caught off guard by market ‘softness’
  • Company boosted incentives and shipments to fleets last year
Production Of The Navara Pickup Truck At A Nissan Motor Co. Factory
Photographer: Brent Lewin/Bloomberg

Nissan Motor Co. is slowing production at several assembly plants to keep the supply of vehicles on U.S. dealers’ lots in check after being caught off guard by weaker consumer demand.

Japan’s second-largest automaker is aiming to have a 50- to 60-day supply of cars and trucks in August, when dealers start transitioning to sell 2019 model-year vehicles, said Dan Mohnke, U.S sales chief for the Nissan brand. Nissan reached 86 days of inventory as of Sept. 1 last year, and the company increased incentive spending and shipped more cars to rental companies and other fleet customers to help bring that number down.