Nissan cuts output, talks to Mitsubishi over alliance: reports

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STORY: Nissan looks to be facing a deepening problem in the U.S.

Reuters sources say it cut output by a third at its top Japanese plant this month as it struggles with demand.

Among other things, that will slash production of its Rogue crossover.

The sources say it will now make around 10,000 of the cars for export - or about half what it had previously planned.

There was no comment from the company.

But the report comes just days after Nissan said its profits were almost completely wiped out over the April-to-June quarter.

It’s been forced to do big discounts to win sales in the U.S., amid criticism over an ageing lineup of models and weak demand for its electric cars.

The company also doesn’t offer hybrids in the American market, meaning it’s missing out on the boom for such vehicles.

Though Nissan has promised a wave of new model launches, analysts say its target of boosting sales by one million cars per year looks in doubt.

Separately Monday, media reports said Mitsubishi Motors is in talks to join Nissan’s alliance with local rival Honda.

Analysts say that underscores the pressure on automakers to work together to develop zero-emission vehicles and other technologies.

A three-way alliance would range Nissan’s team against that led by Toyota, which partners with Suzuki, Subaru and Mazda.

There was no immediate comment from any of the companies involved.