Nissan to close 3 factories, cut shifts in U.S., in bid to end string of quarterly net losses

Nissan is closing factories, slashing jobs and scaling back production as it fights to reverse sustained losses.

 CEO Makoto Uchida is under pressure after merger talks with Honda collapsed.

 But analysts warn the measures may not go far enough to secure the company’s future.

Nissan CEO Makoto Uchida, desperately trying to dig out from back-to-back quarterly net losses, plans to shutter three factories in the next two years, cut shifts at U.S. plants, slash executive ranks by 20 percent and cast about for new partners in a bid to keep the Japanese carmaker going.

Uchida defended the move, saying Honda’s proposal to make Nissan a subsidiary was unacceptable.

However, Nissan remains open to alternative partnerships, including strategic projects with Honda. 

We will continue to focus on exploring strategic partnerships”

(The restructuring will shrink Nissan’s global production capacity by one million units over the next two fiscal years, bringing it down to just four million.Source: Adobe))

The first plant to close will be in Thailand in the first quarter of the next fiscal year starting in April.

Another factory will be shuttered between October and December, while a third will cease operations by March 2027. 

Uchida did not disclose the locations of the other two plants. 

In the US, Nissan will reduce shifts at its Smyrna, Tennessee and Canton, Mississippi plants, cutting further jobs in response to sluggish demand.

Additional layoffs will come from sales and administrative functions worldwide.

Ref: Nissan to close 3 factories, cut shifts in U.S., in bid to end string of quarterly net losses
Photo Credit-Adobe