Nissan offering buyouts, cutting shifts at 3 US plants

In a bid to cut US$2.6 billion (RM11.5 billion) in global costs, Nissan is offering buyouts to workers and cutting back shifts at its Smyrna, Tennessee, and Canton, Mississippi vehicle assembly plants, plus its Decherd, Tennessee engine plant, Reuters reports.

Citing a company spokesperson, the news agency reported that the Japanese carmaker is going to cut one of two shifts for Rogue (also known as the X-Trail) production in Smyrna beginning April, and for the Altima (also known as the Teana) in Canton from September.

Besides Smyrna, the X-Trail also comes out of Nissan’s Kyushu factory, its top plant in Japan. Reuters previously reported that the carmaker was slashing output by a third there in August 2024, amidst weak US demand for some of its aging models, X-Trail included.

Although the spokesperson did not say how many US workers are hoped to accept the voluntary buyout offer, the Nikkei newspaper said the carmaker could potentially cut up to around 1,500 jobs with the move, Reuters reports.

Nissan does not plan to conduct involuntary layoffs, the spokesperson said, adding that over 11,700 people worked at the three US plants as of end-2024.

In early November, Nissan announced a plan to cut 9,000 jobs worldwide and reduce the maximum capacity of its 25 vehicle production lines amidst a sales slump in China and North America. Later that month, the Financial Times quoted a senior official as saying that Nissan had only 12-14 months to survive, and the following month, Nissan and Honda officially announced their intention to explore merging – if it happens, it would create the world’s third-largest auto group, with an annual output of 7.4 million vehicles.

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