Nissan has informed its dealers that it will reduce production of the Rogue and Frontier by up to 40,000 units in September and October. This decision is aimed at curbing inventory levels and oversupply, as dealers face challenges in boosting sales and achieving profitability, despite the Rogue being the brand's top-selling model.
Sales of the Rogue have declined by 4.5 percent during the first half of the year compared to the same period last year. Meanwhile, Frontier sales have increased by 17.1 percent, but this hasn't sufficiently reduced the supply levels to Nissan's satisfaction, which remain above both industry averages and Nissan's own targets.
According to Automotive News, Nissan recently notified suppliers of its plans to cut output at its factories in Smyrna, Tennessee, and Canton, Mississippi. Rogue production has been reduced from five days a week to four, a measure that will be in effect until the end of October. Frontier production has also been scaled back by one day, with the reduction lasting until March 31.
Nissan's current situation is far from ideal. In May, the automaker instructed its dealers to sell vehicles at a loss to help mitigate the growing inventory, as the company approached a 100-day supply of new vehicles. This move further eroded dealer profitability this year, but it did bring Nissan's inventory levels closer to those of its competitors. However, it appears that these efforts have not been sufficient.
