Nissan Motor (TYO:7201) will cut production by about 1,200 vehicles this month at its Kyushu plant in Japan due to disruptions to exports to the Middle East caused by escalating regional tensions, the Nikkei reported on Tuesday.
The report said Nissan will scale back production of models not destined for the Middle East at its Nissan Motor Kyushu plant in Fukuoka Prefecture to free up storage space, as shipments to the region have been disrupted.
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Production of the Patrol, a large SUV that is one of Nissan’s key models for the Middle East, will continue at normal levels at the nearby Nissan Shatai Kyushu plant due to strong demand and high profitability, the report stated.
However, vehicles destined for the Middle East are currently being stored domestically due to constrained logistics routes, it added.
The disruption follows rising tensions linked to the Iran conflict and shipping risks around the Strait of Hormuz, a key global shipping route.
Japan’s Toyota Motor has also said it will cut production of about 40,000 vehicles destined for the Middle East through April, according to Nikkei.
