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Report: Nissan adjusting to waning Chinese market by slashing vehicle output

Nissan Motor Co. Ltd. will slash its planned vehicle production in China from December 2018 to February 2019 by 30,000 units amid waning demand in the company's second-largest market, Reuters reported Dec. 28, citing a source briefed on the matter.

Nissan's initial output plan for the three months was not known, Reuters wrote, adding that between December 2017 and February 2018, the Japanese carmaker produced about 400,000 units in China.

The Nikkei Asian Review also reported Dec. 27 that Nissan's planned output reduction would be until March 2019, starting at three key plants in Dalian and in Zhengzhou this December.

In November, Nissan's global production just ticked up 0.1% year over year to 498,288 automobiles, while international sales fell to 420,070 units, down 11.3% year over year.

Nissan's reported output cut comes amid persistent global trade tensions weighing on demand in China and a scandal involving its former CEO and chairman Carlos Ghosn, who has been indicted for making false disclosures in annual filings to Japan's financial services regulator.

The Nikkei added that Japan's Mazda Motor Corp. is also planning to reduce its automobile production in China, including local contract output, by up to 20% year on year during the first half of 2019.