While the entire automotive industry has faced its fair share of challenges over the past year or so, some are suffering more than others. Near the top of that list is Nissan, which is coming off some disappointing Q4 2024 financial results that prompted the automaker to announce that it plans to reduce its costs by $2.6 billion, cut its global work force by 9,000 people, and trim production by 20 percent. Since then, Nissan has been engaging in merger talks with rival Honda, and now, the company continues to work to right the proverbial ship.
According to Automotive News, Nissan plans to eliminate the second shift at its plants in Smyrna, Tennessee, and Canton, Mississippi that build the Rogue and Altima, and will also reduce output at its engine plant in Decherd, Tennessee, though no shifts will be trimmed at the latter facility. Analysts estimate that this will result in around 63,000 units of decreased production throughout 2025, or roughly 12 percent of Nissan’s total U.S. vehicle output. Additionally, Nissan will reportedly offer buyouts to more than 1,500 of its employees.
These moves are part of Nissan’s global restructuring plan aimed at reducing costs amid sales struggles. “We see the market being very challenging for certain product lines,” said David Johnson, Nissan North America’s head of manufacturing and supply chain management. “Plant utilization rates are not so favorable right now, especially when you look at the two-shift pattern.” Johnson added that these actions are a “momentary reaction” to a decline in consumer demand for the automaker’s products.
In addition to these moves, Nissan recently canceled plans to bring a subcompact all-electric crossover to the U.S. – a project that’s code-named PZ1L – and it won’t be building that model at the automaker’s plant in Canton, Mississippi, as originally planned. The EV will still be produced at Nissan’s plant in Sunderland, England and sold in other markets, but the automaker now has other plans for Canton that it believes will better meet its needs in the American car market.
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When they should be slashing prices instead. Nissan has raised prices so much that many models are nearly on par with equivalent Toyotas and that’s not Nissan’s shtick. Oh, auto management, what has happened to all of you? Stupid, stupid, stupid.
Nissan been hanging by proverbial thread for 10yrs+. Merger wasn’t good the 1st time w/Renault. Will only bog Honda dwn further if goes through.