By on April 7, 2020

Nissan titan assembly Canton Factory

A Tuesday report in Japan’s Nikkei Asian Review claims Nissan is poised to lay off up to 10,000 U.S. workers until assembly work can resume. That’s essentially the automaker’s entire U.S. workforce, and the situation looks pretty much the same overseas.

The layoffs, which would obviously be sans pay, target Nissan’s vehicle assembly plants in Smyrna, Tennessee and Canton, Mississippi, plus the massive Decherd Powertrain Plant in Tennessee. Nikkei claims layoffs will also come to 6,000 workers in the UK and a further 3,000 in Spain. Most, if not all, are expected to be rehired once plants come back online.

Nissan, already reeling from a steep plunge in pre-pandemic sales and associated hits to its balance sheet, announced the pending shutdown of its U.S. plants on March 18th. The idle period was first pegged at March 20th to April 6th. That period soon grew, with the last word from Nissan being that the facilities will remain shuttered “through late April.”

“We will continue to monitor the situation closely and will make adjustments as needed,” Nissan said on April 1st.

Mississippi Today reported 4,000 layoffs at Canton Assembly late Monday, with a company spokesperson claiming Nissan is attempting to fashion a return-to-work plan.

“Obviously safety is the most important thing, especially if the virus hasn’t started to flatten out in terms of new cases,” said Lloryn Love-Carter. “When you have that many people in a plant, we don’t want to be a reason for the cases to grow.”

[Image: Nissan]

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14 Comments on “Report: Mass Layoffs Coming to Nissan Workforce...”

  • avatar
    SCE to AUX

    Nissan’s sales woes are clouding the fact that employers simply can’t afford to pay people who aren’t working.

    Expect to see this replay worldwide, in every industry.

    • 0 avatar

      Correct… unemployment is going to be brutal everywhere. One quick trip around my local city showed pretty much every strip mall parking lot completely empty. I’ve seen less traffic on the roads and more businesses closed then we (in south FL here) encounter during hurricane evacuations.

      Pay people for 2 weeks? Sure let them have their vacation pay. Pay people for 4 weeks, OK I guess many have 2 weeks of sick leave sitting on the books. However paying people for 2 to 4 months for doing nothing? Impossible. Its financial suicide for a company.

      The other problem is this virus is a worldwide problem. Its not like a sales slump in one region which would allow the mothership to limp along propped up by other regions waiting for the storm to pass.

    • 0 avatar

      “employers simply can’t afford to pay people who aren’t working.”

      Big 3 managed to do exactly that for decades and still function.

      • 0 avatar

        “Big 3 managed to do exactly that for decades and still function.”
        Yep, that would be me, 40 years in the auto industry starting with
        Dana (13 years) and ending up with GM (27 years) I got my share of unemployment and sub pay (thank goodness) it didn’t always last as
        I had to take up various other forms of employment, from cable tv,
        steel mill, hanging commercial wall covering, even with Saturn’s
        “100 year car company” and the promise of no lay offs, I still
        managed to get laid off, the last time while still receiving pay
        for almost 2 years, I got to retire without missing a pay check. ;-)

  • avatar

    no layoffs in Japan, of course.

    • 0 avatar

      In fact Japanese companies lay off Japanese employees when situation is dire. Fuji-Xerox I worked with laid off employees in Yokohama after financial scandal in Australia. Its a big corporation, Xerox replacement. They claim in HQ lobby that they invented personal computer and GUI.

  • avatar

    well, they’ll get state benefits plus the horrific $600 per week contribution from the taxpayers. I wonder how many will be making more on the dole than they made building junk?

  • avatar

    rehired at the same rate, position, and seniority i would assume. if they get hired back in as probationary newbs that would play right into the unions hands. wouldnt even have to be UAW. nissan isnt that dumb though, are they? im sure theyll “forget” to call anyone back they see as a rabble-rouser

  • avatar
    87 Morgan

    Nissan really needs to adopt the mantra of not letting a crisis go to waste. Now is the time for them to cull the Infiniti brand and the accompanying dealer network along with allow 1/3 or so of their Nissan dealers to throw in the towel and hand back the sign. Too many stores selling too few cars for little to no profit is disastrous. A lot of these stores have prime real estate that can be repurposed to another brand or industry that can generate revenue.

    • 0 avatar

      What’s the urge in shutting down brands and bankrupting companies on this site? Do you gain personally from that? As to me more brands and more choice is better.

      • 0 avatar
        87 Morgan

        I try to take a realistic approach along with a career spent in the retail automotive space. Infiniti is rental car fodder, the dealers retail too few to be profitable. Basically, an Infiniti store is a really nice used car dealership.

        Again, Nissan product is rental car fodder. Too many dealerships causes prices to be undercut to the point that most Nissan ATP is a net loser once all costs are factored in. Again, too many on the lot against too few buyers who play each store against one another. Whoever has the car the buyer wants, and has had it the longest will sell the with the largest discount to get rid of it. The reason being after X amount of time a curtailment is due to the floor plan lender; so 10% to NMAC, WF or whomever the lender is for the dealer or 8% off to the consumer and the dealer checks a box.

  • avatar
    Jeff S

    Not only cut the Infinity brand but cut the Titan and some of their cars. Even that might not be enough with their Jatco transmissions–“fool me once shame on you, fool me twice shame on me.”

  • avatar

    It seems that the Nature is on Ghosn side.

  • avatar

    This is nothing compared to what is coming.

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