Delhi Delhi: Japanese automaker Nissan is cutting production at its U.S. plants and offering buyouts to factory workers there in a bid to return to profitability. The move is part of a plan announced two months ago by Nissan Motor Corp. to cut 9,000 jobs worldwide, including in China. The company reported a quarterly loss as sales fell and inventory surged. One production line at Nissan’s plant in Smyrna, Tennessee, will maintain two shifts, while another line will be consolidated into one shift, the company said.
The Smyrna plant makes the Murano, Pathfinder and Rogue sport-utility vehicles and the Infiniti QX60 luxury model. At the Canton plant in Mississippi, which makes the Altima sedan and Frontier pickup, Nissan is reducing speeds on one line and consolidating another. At 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, the company said. When Nissan announced its recovery plan in November, it did not say where the job cuts might come from.
The 9,000-person workforce reduction represents about 6 percent of its more than 133,000 global employees. The company also plans to cut 20 percent of its global production capacity. Nissan, based in the port city of Yokohama, said the latest proposals are included in its overall job cut plans, and are designed to make its operations more efficient and flexible.
“Nissan is taking urgent measures globally to improve its performance and build a leaner, more resilient business capable of quickly 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, with completion planned for 2026. Nissan and Honda announced in March they would work together on electric vehicles. In August, they said the partnership was being broadened. They plan to reach a “definitive agreement” by June.
Nissan is scheduled to release its October-December financial results on Feb. 13. Nissan shares rose 2 percent in Tokyo trading after reports emerged about the U.S. plans.
