The Nissan Maxima is one of several models built by the automaker at its two Tennessee assembly plants. Truck and SUV sales have dropped dramatically for the automaker this year, resulting in separation packages being offered to as many 1200 employees.
The Big 3 aren’t the only automakers suffering this year. Of course, if you discount the US market, mostly everyone is doing quite well including Ford and General Motors. Overseas sales are up, but the US market is down thanks to a sour economy and high gas prices.
Honda Plays It Safe
Nissan and Toyota have been hammered, mostly because both automakers dared to tread where Honda refused to go: build big trucks and SUVs. In Tennessee, where Nissan has a pair of production plants, workers are being offered money to quit their jobs as Nissan contracts production. The company has plants in Smyrna and Decherd where employees are being offered incentives of $100-125,000 to leave the company.
This is the first time since Nissan started building cars in the US that the Japanese automaker will be letting people go. The company hopes that 1200 workers take advantage of the offer considering that come August 11th one assembly line in Smyrna that builds trucks will lose a shift. Demand for the big Nissan Titan is way down as it is for the Ford F-150, Dodge Ram, Chevy Silverado, GMC Sierra, and for the Toyota Tundra.
According to the Detroit Free Press, the Smyrna plant produces Nissan’s highest-volume car, the Altima, its Xterra and Pathfinder SUVs, Frontier compact pickup, and Maxima flagship sedan.
“We feel this program is a good opportunity for employees wanting to transition to another phase in life,” Bill Krueger, Nissan North America senior vice president, said in a statement. “This will provide many with the financial means to take a step they otherwise might not have been able to take.”
Nissan hasn’t said what they will do if they don’t get the full 1200 people willing to take a buy out offer. To date, the company has never laid off a U.S. worker, but that might change if not enough people agree to voluntarily leave the company.
(Source: Detroit Free Press)
