Truck Downturn Has Nissan Looking to Cut 1,200 Jobs

The U.S. auto industry sometimes calls North American factories for foreign brands “New American Manufacturers,” but some of the pioneers have been around so long, they have some of the same problems as the traditional domestic plants, such as a graying work force and layoffs due to slow truck sales.

For instance, the Nissan plant in Smyrna, Tenn., started production just over 25 years ago, in June 1983. On July 30, Nissan North America Inc. announced it was offering buyouts worth $100,000 to $125,000 to eligible technicians and salaried employees in Smyrna and at an engine plant in Decherd, Tenn., looking to cut around 1,200 positions.

It was an unusual move, since the “transplant” manufacturers have largely fared much better than their Detroit 3 counterparts.

The first deadline for accepting the buyouts passed on Sept. 12. Nissan said it is still compiling the results, and employees can still change their minds for another three weeks past the deadline. The offer still stands for the next three years if an insufficient number accepts in the first round, but benefits are reduced in the later years.

Nissan employs about 5,500 hourly and salaried employees in Smyrna, and about 1,100 in Decherd. The Smyrna plant builds the Altima and Maxima sedans; the Frontier pickup; plus the Xterra and Pathfinder SUVs.

Through August, Pathfinder sales this year were down 31.7 percent from the year-ago period, to 28,569, according to AutoData. The Frontier was down 13.1 percent, to 39,339; the Xterra, down 18.1 percent, to 28,345.

“Rising fuel prices and a downturn in the economy have caused a dramatic slowdown in sales of full-size trucks and SUVs.  Nissan must adjust to the ongoing market conditions in order to remain competitive,” the company said on July 30.  As a result, the Smyrna plant eliminated night-shift truck production, effective Aug. 11.

Employees who accept the buyout now can elect to leave in 2008, 2009 or 2010 and still get full benefits, a spokesman said. There will be “election periods” if necessary in 2009 and 2010, but as noted, for reduced benefits.