Nissan plans significant job and production cuts in the U.S

In response to significant financial losses caused by declining sales and excessive inventory, Nissan Motor Corp. has recently announced a series of job and production cuts across its U.S. plants. The company is embarking on an urgent effort to return to profitability, which includes a global reduction of approximately 9,000 jobs, accounting for roughly 6% of its total workforce of over 133,000 employees worldwide. This decision follows a quarterly loss that prompted Nissan to reevaluate its operational strategies. Nissan's Smyrna plant in Tennessee, which manufactures vehicles such as the Murano, Pathfinder, and Rogue, is particularly affected. The site is adjusting its production lines by maintaining two shifts on one production line while consolidating the second line to only one shift. Similar adjustments are taking place at the Canton plant in Mississippi, where production speed will be reduced on one line, and another will be consolidated. In the Decherd plant in Tennessee, which focuses on engine production, shifts will be varied with some reductions depending on production demands. To enhance efficiency and adaptability within its operations, the company is adopting these measures, which reflect broader trends in the automotive industry amidst challenging market conditions. Nissan has also committed to reducing its global production capacity by 20% to ensure better alignment with market demand. The measures align with the company’s recovery plan, initiated two months prior, which is aimed at creating a more resilient business structure. Furthermore, Nissan is exploring a partnership with Honda Motor Co. to establish a joint holding company by 2026, focusing on electric vehicle collaboration. The announcement has sparked some positive market reactions, as Nissan's stock saw a 2% increase following reports about these U.S. plans. Subsequently, the company is expected to announce its financial results for the October-December period on February 13, which will provide further insights into its performance and the impact of these cuts on its overall business health.