According to Auto News, Nissan recently announced that it will significantly reduce the production of its Rogue and Frontier models. This decision has been taken due to high inventory problems and trying to balance supply and demand.
Nissan plans to cut Rogue and Frontier production by 40,000 units by the end of October 2024. The production cuts come as the SUV and pickup market is changing and Nissan is looking for ways to improve its financial situation.
Although Nissan has made many efforts to improve quality and increase sales in recent years, it still faces many challenges.
Things are not going well for Nissan these days. The automaker last month told its dealers to sell cars at a loss to help reduce inventory because it needed empty warehouses for a 100-day inventory of new cars. The mentioned action has further damaged the profitability of dealerships this year.
One of the main reasons for this decrease in production is the increase in the inventory of manufactured cars in warehouses. Nissan hopes that by reducing production, it can bring its inventory to a more favorable level and avoid additional costs.
Nissan announced in a statement that this reduction in production will not mean a reduction in quality or customer service, and that it will continue to adhere to its commitments in the field of providing high-quality vehicles and after-sales services and strive to maintain customer satisfaction.
Finally, Nissan’s reduction in production of Rogue and Frontier models reflects the company’s efforts to improve its financial situation and balance supply and demand. Such an action can help Nissan to better respond to market needs and avoid additional costs.
