Nissan Trims Production as U.S. Demand Softens

Nissan Motor Co. is cutting back production of cars and trucks for the U.S. market to help trim dealer inventories ahead of the debut of 2019 models.

The company has been trying to reach an ideal 50- to 60-day supply of new vehicles, down from an 86-day stockpile six months ago. Dealers currently average a 60-day stock of unsold vehicles, according to Automotive News. U.S. sales chief Dan Mohnke tells the newspaper he aims to cut supplies further through June.

Much of the inventory reduction to date has come through increased sales to fleets, an expedient but low-profit way to drain excess inventory. Nissan also boosted spending on retail sales incentives by 13% last year, more than the market’s five other top sellers.

Nissan’s U.S. sales in January-February grew 2% to 253,500 units in a light-vehicle market that shrank 1%, according to Autodata Corp.