JAPAN'S Nissan Motor Co said yesterday it would reduce production by a further 78,000 vehicles and cut 500 temporary workers.

The cuts were being made to avoid a buildup of excess inventory as car sales slow globally, Nissan said in a statement.

The car maker said the workers will be cut from January to March of next year.

It will also temporarily halt production at several domestic car and engine factories from next month.

Nissan has cut production by a total of about 225,000 vehicles over the last year, 16 percent of its initial production forecast.

The company originally planned to produce 1.388 million vehicles in the current fiscal year through March.

Other Japanese auto makers such as Toyota and Suzuki have also reduced production and let temporary workers go.

Nissan shares sank 4.1 percent to 302 yen (US$3.41), while the Nikkei 225 stock average finished slightly higher.