The factories of the automaker Nissan, located in Japan, will reduce production in May by 78% compared to last year, according to an internal document of the Japanese manufacturer, according to Reuters.
Nissan plans to produce around 13,400 vehicles in May, while nearly 61,000 rolled off the company's assembly lines in May 2019.
Nissan's plant in Kyushu, South Japan, which will go into one-shift operation for most of May and June due to lack of demand for the Rogue Sport SUV crossover model, will be hit hardest by Nissan's plant in Kyushu, South Japan. Production volume will decrease by 70% from the originally planned 44.8 thousand units.
In June, production will be reduced to the release of 33.7 thousand cars, while last year 63.7 thousand cars were produced during this period.
The automaker has ceased production at its Tochigi plant, north of Tokyo, from early April and plans to suspend production until the end of May. Also in April, there were intermittent work stoppages at the Nissan Oppama plant in Kanagawa Prefecture.
The company revised its forecast, released in February, which assumed a small profit on the basis of the financial year ended March 31, 2020. Now a net loss of 85-95 billion yen ($ 792-885 million) is expected.
This will mark Nissan's first annual loss since the fiscal year ended March 2009, The Wall Street Journal notes. At that time, the company's performance was affected by the global financial crisis that began in 2008.
Nissan's worse outlook is attributable to a slowdown in vehicle sales, an increase in reserves for potential losses and a decrease in subsidiaries' profits.
