A MAJOR global car brand has halted the production of three of its popular models at two of its major factories.
The cancellation will affect a major market, as the company battles with massive financial difficulties.
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Nissan Motor has suspended the production of its Pathfinder and Murano SUVs which are produced at its huge factory in Tennessee.
The production of the iconic Frontier pickup trucks, assembled in Mississippi, has also been halted.
This cancellation will particularly affect Canadian customers, as both the Mississippi and Tennessee factories serve customers north of the American border.
Although Canada is not one of Nissan’s key markets, the brand’s decision to axe sales of three of its popular models in the country highlights the difficulty caused by Donald Trump’s tariff war.
President Trump imposed 25 per cent tariffs on auto imports in April, which prompted Canada to retaliate with similar tariffs.
This has forced car makers to adjust their strategies, with Mazda halting its Canadian-bound products at its massive Alabama plant.
Instead, Mazda diverted funds to producing cars for the U.S markets.
Nissan has confirmed that the pause in the production of the three models is a “short-term measure”, which could be reversed if the US and Canadian governments reach a “successful agreement in the near future”.
They added that the Rogue and Kicks models, produced in Japan and Mexico, will continue to be available in Canada.
Nissan has battled with incredible losses over the past financial year, sustaining a staggering $4.5 billion net loss.
The company is also staring down the barrel of a massive $4.8 billion in debt.
The British Government threw a lifeline for the struggling car brand, when UK Export Finance underwrote a £1 billion loan to keep the company afloat.
To save money, the car brand is rumoured to be reducing its number of factories from 17 down to 10.
The government hopes that the move will help to keep the Sunderland factory – the brand’s only plant in the UK – open.
This could save over 20,000 British jobs.
However, this is just a fifth of the 1 Trillion Yen needed to keep the company going.
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