TOKYO: Nissan Motor Co. plans to reduce its vehicle production in the United States by 17 percent until the end of March 2025, people familiar with the matter said Tuesday.

The Japanese automaker will cut production at its plant in Canton, Mississippi, that makes the Frontier pickup truck and others, and at its plant in Smyrna, Tennessee, where the Pathfinder SUV and others are assembled.

The company said that it will make its inventory levels appropriate by updating its production plan in accordance with demand.

Nissan has unveiled plans to cut its global vehicle production by 20 percent in response to its deteriorating profitability.

On Nov. 7, the company posted a plunge of over 90 percent in consolidated operating profit for the six months ended September, compared with the same period last year, due mainly to its sluggish vehicle sales in North America.

Nissan saw about 6 percent of its workforce in North America accept voluntary buyout packages. In Thailand, the automaker will consolidate production bases and reduce jobs.

JIJI Press