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Nissan October production down globally except in Mexico, but Trump tariff danger looms

Nissan Motor said on Thursday its international production fell for a fifth straight month in October, led by downshifts at most of its production centers except for Mexico.

While worldwide sales also dropped for a seventh month, sales in Nissan's core market, the United States, grew for the first time in 3 months.

Nissan earlier this month announced strategies to axe 9,000 jobs and 20% of its manufacturing capability internationally to cut costs, after the third-biggest Japanese carmaker behind Toyota and Honda suffered sales slumps in China and the U.S.

. The risk of U.S. tariffs is now clouding the struggling car manufacturer's restructuring efforts.

Nissan's worldwide output for October reduced 6% from the very same month a year previously to 290,848 vehicles. Production both in the U.S. and China fell 15%, while output in Britain plunged 23% and production in Japan shrank 4%.

A brilliant spot was Mexico, where production increased 12% to 70,382 cars. That meant nearly one in four Nissan automobiles worldwide was made in Mexico last month.

Nevertheless, that might come under pressure as U.S. President-elect Donald Trump this week said he would enforce a. 25% tariff on imports from Canada and Mexico upon taking office. in January.

Nissan has actually exported some 300,000 vehicles from Mexico to. the U.S. this year, and will closely keep track of tariff strategies, Chief. Executive Makoto Uchida stated quickly after Trump's re-election.

In October, Nissan offered 13% more lorries in the U.S., its. very first growth given that July, led by compact sedan Sentra. Nissan's. sales likewise rose in Mexico and Canada however fell by double-digit. rates in China and Europe to lead to a 3% drop globally.

By contrast, Toyota's international sales increased 1.4% to mark. the very first increase in 5 months in October, while its worldwide. production continued to decrease due in part to a production. stop in the U.S.

(source: Reuters)