Honda Motor said it would build fewer cars in Japan, Europe and North America to reflect an increasingly bleak outlook for sales as the global economic crisis discourages big-ticket purchases.

The severe and deepening downturn in demand is threatening the future of Detroit's Big Three - General Motors, Ford Motor and Chrysler.

But no carmakers have been spared and Asian rivals have been rushing to cut costs and avoid inventories building further.

Fitch Ratings yesterday downgraded the long-term debt ratings of Nissan Motor to BBB-plus from A-minus, assigning a negative outlook citing its dependence on the flagging US market.

Honda, Japan's No 2 carmaker, said it would cut output at its Saitama factory near Tokyo by 40,000 vehicles due to slow sales of Accord sedans, mainly bound for North America and Europe.

It will also chop production by an additional 21,000 cars at its UK factory, bringing the total reduction there to 53,000 units in the year to March next year, or more than 20 per cent of annual capacity.

At the start of the business year in April, Honda had planned to sell 4.14 million cars.