Nissan is implementing significant production cuts at its facilities in the United States while also offering buyouts to workers as part of its strategy to regain financial stability. This decision aligns with the automaker’s broader initiative to eliminate 9,000 jobs worldwide, which was announced two months prior, following financial losses linked to declining sales and excessive inventory levels.
At the Smyrna plant located in Tennessee, the company has decided to maintain two shifts on one of its production lines while consolidating another line to a single shift. This facility is responsible for manufacturing several popular SUV models, including the Murano, Pathfinder, and Rogue, in addition to the Infiniti QX60 luxury vehicle.
In Mississippi, the Canton plant—which produces the Altima sedan and Frontier pickup—will see a reduction in production speed on one line and will also consolidate operations on another line. Similarly, adjustments will be made at the Decherd plant in Tennessee, where engines are manufactured; some shifts will remain unchanged while others will be reduced to one shift in a phased manner.
When Nissan initially unveiled its recovery plan in November, it refrained from disclosing specific details regarding where job reductions would occur. The planned workforce cuts of 9,000 employees represent roughly 6% of the company’s total global workforce of over 133,000 personnel. Additionally, Nissan aims to decrease its overall production capacity by 20%.
Headquartered in Yokohama, Japan, Nissan indicated that the latest buyout offers are part of these broader job reduction efforts, aimed at enhancing operational efficiency and flexibility. In its statement, the company emphasized the urgent need for global measures to improve performance and develop a leaner, more adaptable organization to respond swiftly to market changes.
In a separate development, Nissan and its competitor, Honda Motor Co., are collaborating to establish a joint holding company with plans for integration by 2026. Earlier this year, the two companies announced their intention to partner on electric vehicle production and have since decided to expand this cooperation, with a definitive agreement expected to be finalized by June.
Nissan is scheduled to announce its financial results for the October to December period on February 13. Following the news of its production adjustments in the United States, shares of Nissan experienced a 2% increase in Tokyo’s stock market.
