Nissan Motor has started production cuts and employee buyout programs at three U.S. manufacturing facilities to achieve a USD 2.6 billion spending reduction across all operations according to company statement information on Thursday.  

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Nissan offers voluntary buyout packages to all production employees working in their Smyrna Tennessee vehicle assembly plant along with their Canton Mississippi facility and Decherd Tennessee engine assembly installation. The automaker will decrease the factory production schedule for its Rogue SUV manufacturing line at Smyrna starting in April and for its Altima sedan operations at Canton beginning in September.  

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The number of employees seeking separation remains undisclosed by Nissan but internal reports indicate between 1,500 and up staff members may choose this path. Towards the end of 2024 the three U.S. plants operated with staff exceeding 11,700 employees. The company announced that they will not enforce any forced staff terminations across the business.  

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Nissan has adopted these production reductions as part of its strategic operation streamlining initiative because its sales have weakened substantially in China and North America markets. The Kyushu plant of Nissan faced a one-third Rogue production decrease in August 2024 because U.S. market demand weakened according to Reuters. Nissan operates its SUV production at just one site worldwide through its facility in Smyrna.  

Nissan made these workforce reductions as part of its November job cuts worldwide which involved reducing staff by 9,000 and cutting down vehicle production across all its 25 production lines. The company makes major changes in its operations because it faces growing competition alongside consumer market modifications.  

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The announcement emerged during a time when Nissan and its Japanese competitor Honda Motor Co. started considering joining forces through a possible business merger. The proposed union shows potential to form the third biggest automotive collective that should produce no less than 7.4 million vehicles yearly.  

As Nissan recalibrates its global operations, the impact on its U.S. workforce and long-term production plans remains a focal point for industry observers.