Nissan to cut back Chinese car production in opening of 2019 as US-China trade war slows sales

Nissan has cut back its Chinese production plans for the first months of 2019, amid falling demand in the world’s biggest car market, according to reports.

The company has followed Ford and Hyundai in cutting production, reportedly planning to make 30,000 fewer cars in the period to the end of February.

China’s trade war with the United States has slammed the brakes on vehicle sales in recent months, despite an apparent truce in December after Donald Trump and Xi Jinping met after a G7 summit in Argentina.

Nissan counts China as its second-largest market, responsible for around 25 per cent of its yearly sales. It said earlier this year it would boost sales from 1.5m units last year to 2.6m by 2022.

Japan's Nikkei newspaper reported Nissan is to cut production at three Chinese plants where it produces to Qashqai, Infiniti, X-Trail and Venucia models.

The company has been in the headlines for the wrong reasons of late after the arrest of former chairman Carlos Ghosn on financial misconduct charges. Nissan ousted him as chairman in November after the allegations emerged, straining ties with French car maker Renault, Nissan’s partner.

Ghosn, who was arrested for a third time last week, was yesterday alleged to have paid $14.7m (£11.6m) in four instalments to Khaled Al-Juffali, the vice chairman of the EA Juffali and Brothers conglomerate – one of Saudi’s biggest – sources told Reuters.

Prosecutors did not identify the person they say received the money in Nissan funds between 2009 and 2012.

The payments were made after the person helped Ghosn transfer losses from his personal investments to the carmaker.

“By doing so, [Ghosn] behaved in a way that breached trust, and inflicted damage on the property of Nissan,” prosecutors said in a statement.