Japanese automaker Nissan has announced significant cuts in its U.S. operations as part of a plan to save $2.6 billion.
The company is reducing shifts at its factories and offering voluntary redundancy packages to employees.
These measures come amid growing pressures on the global automotive industry, with manufacturers grappling with rising costs, supply chain challenges, and shifts toward electric vehicle production.
According to Autokult.pl, Nissan's cost-cutting efforts will affect its factories in Smyrna, Tennessee; Canton, Mississippi; and Decherd.
Shift Reductions and Layoffs
Starting in April, Nissan will eliminate one production shift at its Smyrna plant, which manufactures the Rogue SUV.
A similar reduction will occur at the Canton facility, where the Altima sedan is produced, beginning in September. Nissan plans to offer employees incentives for voluntary departure but has not disclosed the compensation details. Japanese media outlet Nikkei reports that up to 1,500 jobs could be affected.
This initiative is part of a larger restructuring plan announced in November 2024. The company is considering laying off as many as 9,000 employees across its operations in North America and China.
Potential Merger with Honda
In response to the ongoing crisis, Nissan is reportedly exploring a merger with Honda.
Japanese media suggest that talks are progressing between the two automakers. A successful merger would create the world’s third-largest automotive company and could provide both firms with the scale and resources needed to remain competitive in an evolving market.
Analysts view the merger as a strategic move to counter increased competition from Chinese manufacturers and to accelerate the transition to electric vehicles. For now, Nissan’s restructuring efforts reflect the broader challenges facing traditional automakers in a rapidly changing global landscape.
