Nissan to reduce output by 32% in Japan

Japan’s Nissan Motor Co. said it plans to cut its domestic vehicle production in the first half of the current fiscal year by 32% to 440,000 units. If the plan pushes through, the automaker’s domestic production will fall short of one million units for the first time in 42 years. The cutback, media reports said, underscores how the Japanese auto industry is struggling with falling exports and domestic sales amid the global economic downturn. However, the company has also said it will promote electric vehicles in Japan together with the city of Yokohama. Nissan plans to put electric cars on sale in Japan in 2010, and will start setting up charging stations at dealerships in the city starting April 1. Yokohama will provide up to ¥300,000 (US$3,055) in subsidies for each purchase of an electric vehicle, which will be available for 100 vehicles in fiscal 2009. (March 4, 2009)