Nissan Cuts Production, Offers Buyouts in US Plants to Boost Profitability
Nissan Motor Corp. is implementing measures to enhance profitability, including production cutbacks and workforce reductions at its US plants.
Production Adjustments:
* Smyrna, Tennessee plant: Consolidate one production line from two shifts to one.
* Canton, Mississippi plant: Reduce speed on one line and consolidate another.
* Decherd, Tennessee plant: Gradual shift adjustments, maintaining some while reducing others by one shift.
Workforce Reduction:
As part of Nissan's global plan to reduce 9,000 jobs, buyouts are being offered to factory workers in the US. This represents approximately 6% of the company's global workforce of over 133,000 employees.
Efficiency and Flexibility:
Nissan aims to increase operational efficiency and flexibility through these adjustments. The company emphasizes its commitment to adapting quickly to market shifts.
Collaboration with Honda:
Separately, Nissan and Honda Motor Co. are forming a joint holding company by 2026. Their collaboration includes electric vehicle development and is expected to result in a "definitive agreement" by June.
Financial Outlook:
Nissan's October-December financial results will be released on February 13. Shares in Tokyo trading surged 2% after the announcement of the US plant adjustments.