Nissan has become the latest motor company to cut back production in response to the financial crisis.

The company announced yesterday it was reducing production of its Altima models at assembly plants in Tennessee and Mississippi due to sluggish demand in the US. In Japan, a Nissan spokeswoman said the company would also slash output by 28,000 units, at its factory north of Tokyo.

Nissan, the company's third-biggest car maker, also plans to cut production by 37,000 units, mostly sport utility vehicles Murano and Rogue, at its plant in Fukuoka, southern Japan.

Meanwhile, the number of cars made in the UK rose last month, but industry leaders warned that tough times lay ahead for manufacturers. A total of 142,606 cars were produced in September 2008, 2.4% more than in the same month last year, the Society of Motor Manufacturers and Traders announced.

However, Douglas Robertson, chief executive of the Scottish Motor Trade Association, said the motor industry in Scotland was already in recession.

"The 26% reduction in new car registrations in September in Scotland was viewed by many as evidence that the recession has already hit the retail motor industry," he said.

"As consumers see their house values falling, their pension values falling, their savings being reduced, and as possible unemployment looms for many, sales of new cars have suffered drastically.

"We believe that this trend will continue and already we are aware of some dealerships closing and/or cutting back on staff numbers."