Nissan Motor Co. is reportedly preparing to cut vehicle production in North America by 20 percent amid a decline in U.S. sales.
The move would come as the Trump administration considers a 25 percent tariff on auto imports and as negotiations on revising the North Atlantic Free Trade Agreement stall over disagreements on the automotive provisions.
Japanese business daily Nikkei Asian Review reported Monday that Nissan is already implementing the planned cuts at two assembly plants in the U.S. and three in Mexico. The changes are expected to wrap up later this year, the outlet reported.
A Nissan spokeswoman said the report was not based on any announcement from the company.
“We are managing production levels to keep inventory healthy and in line with market demand,” the spokeswoman said in an emailed statement.
Earlier this month, Nissan said U.S. sales rose 0.7 percent to 1.59 million during 2017, even as the number of vehicles sold dipped.
