A number of major automakers have revealed that they intend to cut production this year in major markets in the wake of falling demand, Reuters reported yesterday (4th March).

According to the news provider, Nissan, the third-largest manufacturer in Japan, is expecting global output to plummet by 30 per cent between April and September.

BMW revealed last month that it will cut 850 jobs at its Mini plant in Oxfordshire and operate for five rather than seven days per week as it tackles 35 per cent sales declines.

Chrysler has cut 1.2 million units, removed 12 production shifts and closed two plants since 2007, while fellow powerhouse General Motors has slashed its first-quarter production plans by 53 per cent on a year-on-year basis.

Ford, the remaining member of the 'Big Three', has followed suit with a 38 per cent production cut for Q1, while Jaguar Land Rover has reduced output at its Solihull, Halewood and Castle Bromwich plants.

Toyota has suspended operations at 12 vehicle and parts plants in Japan for six days last month and five this month, plus cutting its forecast for the 12 months to the end of March by a fifth, to 7.08 million units.

Nissan is expecting to produce 3,069,000 vehicles for the same period - 20 per cent less than predicted - while Mazda is looking to decrease output by 48,000 in 2009, 18 per cent lower than its forecast sales volume.

Mitsubishi will also be scaling production down to a third of its planned sales total (330,000 less units) - including a 50 per cent cut between April and June - and South Korean company Kia announced it will cut output by a quarter in Q1.

Honda has added 50,000 more vehicles to its expected cut of 370,000 in the 12 months to the end of March in North America, Europe and Japan, while Porsche will halt production for a further 19 days before its summer break.

PSA Peugeot Citreon has announced a 30 per cent production decrease for Q4 and site closures, and Seat intends to further reduce output at its main Catalonia plant in the first half of the year.

Italian automaker Fiat has confirmed that it has extended its plant closures into March as it continues to send home blue-collar workers, while Volvo has reduced inventories by cutting production at a number of its plants.

Finally, Hyundai will be slashing output at its South Korean plants by 25 to 30 per cent in Q1 and AvtoVAZ intends to keep its abridged work week of six to eight hour shifts across three to five days.



Sources:

FACTBOX-Auto industry production cuts (04/03/09)
http://uk.reuters.com/article/motoringAutoNews/idUKL472409720090304?sp=true

Mitsubishi Motors to Ease Production Cutbacks, Sankei Says (05/03/09)
http://www.bloomberg.com/apps/news?pid=20601101&sid=a_Uz48bZ7i7k&refer=japan