Nissan Reduces Truck Output in Response to Surplus

Nissan announced today that it will reduce truck production to only one shift at its plant in Canton, Mississippi, while adding an additional shift for the production of the Nissan Altima this summer.

The manufacturer is following suit behind Detroit automakers and other companies, such as Toyota, who are now forced to contend with a surplus of trucks and SUV's.

Given the current economic crisis, consumers are beginning to make lifestyle changes and this includes proactively choosing a different type of vehicle.  This past April marks the first time in six years that car sales surpassed light truck sales in the U.S. market.

Sales of the Altima climbed an incredible 43.6% in May, and are up overall by 15% percent this year.

This trend in reducing the production of trucks and SUV's appears to be more permanent than many of us originally thought.  The fact that some manufacturers are closing particular plants seems to support this.

So, is this simply a temporary phase resulting from today's tough times?  Will these larger vehicles ever make a comeback?  With predictions that our current gas prices are here to stay, I'd be willing to bet that the hybrids and smaller vehicles are as well.

Comments

[ckroll98]

I think people are making changes for the here and now. Eventually, as tough as it may seem, people will adjust to the higher gas prices and go back to buying trucks and SUVs, but I don't see it happening soon. There will always be a need/desire for trucks. As far as Nissan goes, it is wise for them to reduce production on the vehicles that are not selling well and increasing production on those that are. Just don't eliminate the trucks and SUVs just yet.

[Mazerman]

GM is another example of car manufacturers drastically reducing production of SUVs and trucks. Whether a passing trend or a period that heralds a whole new era of the types of vehicles produced for the future remains to be seen, and will be contingent on a number of factors not yet determined politically and ecologically.

[Sue B.]

What bothers me most is that this trend was evident. Instead of waiting until there was a surplus forcing manufacturers to stop production, close plants, and eliminate jobs, only adding to our economic demise, a more proactive approach from the many obvious harbingers of this demand decrease should have been previously heeded and acted upon.

[fixit]

No surprise here. Weren't they paying attention to the trends? Did this just sneak up on them? I expect this to be a relatively permanent change.