Nissan to cut production, temporary workers

Wed Dec 17, 2008 12:55 AM EST

TOKYO — Nissan Motor Co. said Wednesday it would reduce production in Japan by a further 78,000 vehicles and cut 500 temporary workers there.

The cuts were being made to avoid a build up of excess inventory as car sales slow globally, Nissan said in a statement.

The No. 3 Japanese carmaker said the workers will be cut from January to March of next year. It will also temporarily halt production at several Japanese car and engine factories from January.

Nissan has cut production by a total of about 225,000 vehicles over the last year, 16 percent of its initial production forecast for 1.388 million vehicles in the current fiscal year through March.

Other Japanese automakers such as Toyota and Suzuki have also cut production and temporary workers.

Nissan shares sank 4.1 percent to 302 yen Wednesday, while the Nikkei 225 stock average finished slightly higher.