Nissan Latest: Regional Offices to Close As Cost-cutting Marches On

Steph Willems
by Steph Willems
nissan latest regional offices to close as cost cutting marches on

Nissan’s attempt to slash costs amid a protracted sales and profit slump will mean the end of two regional offices in the United States.

The news comes after a slew of measures aimed at reining in spending, the most recent of which was a buyout package offered to U.S. employees over the age of 52. With two years of declining sales on its ledger, the automaker figures fewer vehicles sold should result in fewer offices.

In a letter to dealers seen by Automotive News, Nissan states that, starting July 1st, its sales offices will be pared down from eight to six. Gone are the Northwest and Mountain region offices.

“Like many other automotive companies, Nissan North America is taking proactive steps to assess our structure, workflow and operational efficiencies amid a challenging industry environment,” Senior Vice President Airton Cousseau said in the letter.

Cousseau wrote that the “leaner” organization would still provide dealers with “all the support you need.”

Not included in the letter was any mention of how many employees opted for the buyout package, or whether involuntary departures are in the works to cut overhead. Naturally, some dealers aren’t happy with the prospect of forming new relationships, claiming the support Cousseau mentioned wasn’t available in great amounts.

As Nissan holds firm on its goal of reducing rental and fleet deliveries while also cutting back on incentives, the need to free up money elsewhere in the business has seen it take increasingly harsh triage measures. Among them, a sizeable reduction in the amount of employee travel. Last month, U.S. Nissan workers experienced a two-day furlough.

On the product side, recent introductions, such as the 2020 Sentra and the refreshed Titan and Titan XD, reveal a push for fewer build configurations.

[Image: Nissan]

Join the conversation
2 of 14 comments
  • Schmitt trigger Schmitt trigger on Feb 03, 2020

    SCE to AUX: Unfortunately, Nissan is not alone in the buyout craze. Age limits differ, some add further conditions like "10+ years on the job". And then corporations wonder how come employees are no longer "loyal"

  • Ol Shel Ol Shel on Feb 03, 2020

    And all of the troubles at Nissan started AFTER Ghosn was arrested? Sure, Carlos.

  • Malcolm Mini temporarily halted manual transmission production but brought it back as it was a surprisingly good seller. The downside is that they should have made awd standard with the manual instead of nixing it. Ford said recently that 4dr were 7% manual take rate and I think the two door was 15%.
  • Master Baiter It’s hard to make predictions, especially about the future. It will be interesting to see if demand for Ford’s EVs will match the production capacity they are putting on line.
  • Brett Woods 2023 Corvette base model.
  • Paul Taka Hi, where can I find 1982 Honda prelude junkyards in 50 states
  • Poltergeist Make sure you order the optional Dungdai fire suppression system.