Nissan Motor (TYO:7201) and Toyota Motor (TYO:7203) are cutting production as disruption in the Strait of Hormuz halts shipments to the Middle East, Nikkei reported Wednesday.
Nissan will reduce output by about 1,200 vehicles this month at its Kyushu unit, adjusting production as exports to the region stall, while maintaining output of key models such as the Patrol, according to the report.
Toyota plans to cut about 20,000 Middle East-bound vehicles by end-March, with total reductions seen reaching around 40,000 units by end-April, the report said.
The Middle East remains a core market, accounting for roughly 30% of regional auto sales for Japanese brands, but shipping suspensions have left car carriers stranded and exports delayed, according to the report.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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