Nissan Embarks on Radical Overhaul to Revive Fortunes
U.S. Plants Feel the Pinch as Automaker Seeks Profitability
In a bid to stem losses and regain its footing, Nissan is implementing drastic measures at its U.S. plants, including production cuts and buyouts for factory workers. This move is part of the Japanese automaker’s broader strategy to axe 9,000 jobs globally, announced two months ago, in response to dismal sales and swelling inventory.
Tennessee Plants Take the Brunt
At Nissan’s Smyrna plant, one production line will operate with two shifts, while the other will consolidate to a single shift. This facility produces the Murano, Pathfinder, and Rogue sport-utility vehicles, as well as the Infiniti QX60 luxury model. Meanwhile, the Canton plant in Mississippi, which manufactures the Altima sedan and Frontier pickup, will see a reduction in production speed on one line and consolidation on another. The Decherd plant in Tennessee, responsible for engine production, will undergo more gradual shift adjustments, with some shifts maintained and others reduced by one.
Global Restructuring Efforts
The workforce reduction of 9,000 people represents about 6% of Nissan’s global workforce of over 133,000 employees. Additionally, the company plans to slash its global production capacity by 20%. Nissan aims to create a leaner, more agile business capable of rapidly adapting to market changes.
Partnership with Honda on the Horizon
Separately, Nissan and Honda are working towards forming a joint holding company to integrate their businesses, slated for 2026. The two Japanese rivals announced their partnership on electric vehicles in March, which has since been expanded. They expect to reach a definitive agreement by June.
Financial Results Looming
Nissan is set to release its October-December financial results on February 13. The news of the U.S. plans sent Nissan stocks soaring 2% in Tokyo trading.
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