Nissan decreases production in factories through the construction of its SUV SUV and Altima SUV models, indicating a broader deceleration in demand. In addition to reducing production, the car manufacturer plans to offer reimbursements to more than 1,500 workers and reduce operations in one of its engines. These movements stand on Honda’s heels, suggesting subtly that Nissan will have to fulfill if he needs its merger planned in 2026 to remain on the right path.
Starting in April, the timing of paints with Nissan Rogue and Altima will be eliminated in Smyrna, Tennessee and Canton, Mississippi. Nissan didn’t specify how much it will have an effect on its overall output, but analysts recommend it could drive 63,000 fewer cars this year. This would be equivalent to around 12% of Nissan’s overall production in the United States.
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Nissan has also confirmed that it will reduce output at its engine plant in Decherd, Tennessee. David Johnson, the head of manufacturing and supply chain management at Nissan North America, described the changes as a “momentary reaction” to demand.
“We see the market being very challenging for certain product lines,” Johnson told Auto News. “Plant utilization rates are not so favorable right now, especially when you look at the two-shift pattern.”
Nissan did not say precisely when the plants will return to two shifts. However, the Smyrna site will start building a rogue plug-in hybrid in 2027, and that will require a change of timing. The Guangzhou site will also return to a two-race program and take care of the production of an EV, most likely arriving in 2028.
In addition to these production alterations, Nissan said it’ll start offering voluntary severance packages to hourly workers. While it hasn’t specified how many jobs it hopes to axe with this measure, one unnamed source suggests it’s looking to reduce headcount by as much as 1,500.
“This is a correct opportunity for those who need to do anything with their careers, or simply retired,” Johnson said about the cuts. “It is difficult, however, this is what we have to do to ensure that we generate the correct type of income source for the company so that we can invest in the future. “
For Nissan, the next few years will be an act of balance between the relief of the load to remain competitive and that remains in the game while the industry goes to electrification.