Nissan Adjusts Production to Balance '06 Inventory; Six Days of Production to Be Taken out of First-Quarter Schedule

SMYRNA, Tenn.--April 19, 2006--Nissan North America, Inc. (NNA), will take six days of vehicle production out of the 2006 fiscal year first-quarter schedule in an effort to balance inventory levels of its 2006 models. The inventory balance is being made in preparation for the 2007 models that will begin to arrive in Nissan showrooms this summer.

Production will be temporarily stopped at Nissan's three U.S. manufacturing facilities -- in Smyrna and Decherd, Tenn., and in Canton, Miss. The change will cut approximately 18,000 vehicles from the planned production schedule.

"We are taking a proactive approach to manage our inventory levels by making a change in our planned production schedule," said Dan Gaudette, NNA senior vice president of North American Manufacturing and Supply Chain Management. "Nissan is a company that manages its operations with flexibility and in response to customer demand. As we begin launching the wave of 2007 models this summer, we're confident that normal production schedules will resume."

The first day of suspended production -- Monday, April 17(1) -- was added to the Easter holiday as a vacation day for all employees.

Four additional days will be added to the summer shutdown period, which will now be scheduled as vacation days from Monday, June 26, through Friday, July 7 (including the July 4 holiday).

The sixth day is scheduled adjacent to the Memorial Day weekend, on Friday, May 26, 2006.

The need to change the production schedule was discussed with employees in a series of focus group meetings.

"Our employees understand the need to adjust our planned production schedule, and the focus groups were very supportive," said Gaudette. "Their suggestions were used to develop the revised plan."

Nissan will continue to closely evaluate inventory levels and sales over the next few weeks and months, and additional down days could be added as necessary.

During fiscal year 2006, Nissan will launch seven new models in the U.S. market, including the Nissan Versa Hatchback and Versa Sedan, Nissan Sentra, Nissan Quest, Nissan Altima and Altima Hybrid, and Infiniti G35 Sedan.

More information on NNA and the complete line of Nissan and Infiniti vehicles can be found online at www.nissannews.com or by contacting the corporate media line at 310-771-5631.

(1) Day-shift dates are noted in this release, but production will also cease for the same number of shifts for night- and afternoon-shift employees at all three plants.