Nissan to cut or relocate nearly 1,000 jobs in Thailand

Delhi Delhi: Nissan Motor will cut or transfer about 1,000 jobs in Thailand as it reduces production in Southeast Asia, part of its recently announced global workforce reduction plan, two sources familiar with the matter told Reuters on Friday.Nissan plans to partially shut down production at its Plant No. 1 in Thailand, one of two car assembly plants in the country, and consolidate operations at Plant No. 2 by September next year, according to the sources, who declined to be identified as they were not authorised to speak on the matter.

A Nissan spokesman declined to comment on the job cuts but said a partial consolidation of plants was underway to upgrade equipment and no plants there would be closed. “Plant No. 1 continues to serve as our major production site in Thailand,” the spokesman said. The struggling Japanese carmaker announced plans to cut 9,000 jobs worldwide earlier this month after posting worse-than-expected half-year earnings. In the United States, about 6 percent of local employees are leaving Nissan by the end of this year by accepting early retirement packages.

The two Thailand plants are in Samut Prakan province on the outskirts of Bangkok. Maximum Plant 1 had a production capacity of about 220,000 units, while Plant 2 had a capacity of 150,000 units, making Thailand the largest Southeast Asian production hub for the company. Nissan sales in Thailand fell 30 percent to about 14,000 units in the last fiscal year ended in March. While Japanese automakers including Toyota and Honda have dominated Thailand’s market for years, Chinese manufacturers such as BYD and SAIC were emerging fast with electric vehicle options.