World News | Japanese Automaker Nissan Says It Plans Job and Production Cuts in US
Get latest articles and stories on World at LatestLY. Nissan is slashing production at its US plants and offering buyouts to factory workers there as part of the Japanese automaker's urgent efforts to return to profitability.
Tokyo, Jan 30 (AP) Nissan is slashing production at its US plants and offering buyouts to factory workers there as part of the Japanese automaker's urgent efforts to return to profitability.
The move is part of Nissan Motor Corp.'s plans, announced two months ago, to slash 9,000 jobs globally, including in China, after it racked up a quarterly loss due to sinking sales and ballooning inventory.
At Nissan's plant in Smyrna, Tennessee, one production line will maintain two shifts, while the other line will consolidate to one shift, the company said.
The Smyrna plant makes Murano, Pathfinder and Rogue sport-utility vehicles and the Infiniti QX60 luxury model.
In the Canton plant in Mississippi, which makes the Altima sedan and Frontier pickup, Nissan is reducing the speed on one line and consolidating another.
In the Decherd plant in Tennessee, which makes engines, shift adjustments will be more gradual. Some will be maintained while others will be reduced by one shift, it said.
When it announced its recovery plan in November, Nissan didn't give details on where the job cuts might come.
The workforce reduction of 9,000 people amounts to about 6% of its more than 133,000 global employees. The company also plans to slash its global production capacity by 20%.
Nissan, based in the port city of Yokohama, said the latest offers count toward its overall job reduction plans, and are designed to make its operations more efficient and flexible.
“Nissan is taking urgent measures globally to turnaround its performance and create a leaner, more resilient business capable of swiftly adapting to changes in the market,” the company said in a statement.
Separately, Nissan and Japanese rival Honda Motor Co. are working to form a joint holding company to integrate their businesses, planned for 2026.
Nissan and Honda announced in March they will work together on electric vehicles. In August, they said that partnership was being broadened. They plan to have a “definitive agreement” by June.
Nissan is set to release its October-December financial results on Feb 13. Nissan stocks jumped 2% in Tokyo trading after the reports about the U.S. plans surfaced. (AP)
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)