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Nissan plans $2.8bn cost cut, scaling back US factory

Exclusive: Automaker to close one line at Mississippi plant

The closure of a production line at Nissan Motor's Mississippi plant will cut the automaker's U.S. capacity by more than 10%.

TOKYO -- Nissan Motor plans to scrap a production line at one of its two U.S. auto assembly plants as part of an effort to cut 300 billion yen ($2.79 billion) in annual costs, Nikkei learned Tuesday.

The closure of a line at the factory in Canton, Mississippi, is expected to reduce the Japanese automaker's U.S. production capacity by more than 10% from an estimated at 1.1 million vehicles a year. Work at the facility has been halted since mid-March.

Nissan made about 690,000 vehicles in America last fiscal year, down 15% from fiscal 2018.

The company is expected to report its first consolidated net loss in 11 years when it announces fiscal 2019 earnings Thursday. Worldwide sales sank 13% by volume to 4.79 million vehicles.

The automaker looks to slash its global capacity by roughly 20% to 5.4 million vehicles a year. It is considering steps including shuttering an assembly plant in Barcelona.

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