According to reports, Nissan has cut back on its Chinese production plans for the first months of next year, amid decreasing demand in the biggest car market in the world.
The car maker has followed Hyundai and Ford in cutting their production. Reportedly, it will be planning to make 30,000 fewer cars in the period to the end of February 2019.
In the past months, the trade war of China with the United States of America has slammed the brakes on vehicle sales, despite an apparent truce this month after US President Donald Trump and Chinese President Xi Jinping met after a G7 summit that was held in Argentina.
Nissan considers China as its second-largest market. It accounts for approximately 25 percent of the yearly sales of the company. Earlier this year, it said that it would boost its sales from 1.5 million units in 2017 to 2.6 million by 2022.
The Nikkei newspaper of Japan reported that Nissan is set to reduce the production at three of its plants in China where it produces its Infiniti, Qashqai, Venucia, and X-Trail models.
The firm has been in the headlines for the wrong reasons of late following the arrest of Carlos Ghosn, its former chairman, over allegations of financial misconduct charges. Nissan removed him as its chairman last November after the said allegations emerged. The issue affected its ties with Renault, a French car maker and Nissan’s partner.
Ghosn was arrested for a third time last week. Yesterday, sources told Reuters that he was alleged to have paid $14.7 million (£11.6 million) in four instalments to the vice chairman of the EA Juffali and Brothers conglomerate, Khaled Al-Juffali.
The prosecutors did not name the person that they say received the money in Nissan funds between the period of 2009 and 2012.
The said payments were made after the person helped Ghosn in transferring the losses from his personal investments to the carmaker.
In a statement, the prosecutors stated: “By doing so, [Ghosn] behaved in a way that breached trust, and inflicted damage on the property of Nissan.”