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Maxima Factory
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The Nissan North America Inc. said that 775 workers at its vehicle and engine plants in Tennessee, which equates to around 12 percent of the factories' combined payroll, had accepted a company buyout plan. Initially, Parent Nissan Motor Co. only expected about 300 of the 6,200 factory workers to take the buyouts but the real numbers astounded the automaker.
Nissan said that 681 employees at its plant in Smyrna and 94 employees at Decherd decided to take advantage of the offers. Retirements accounted for 303 of the combined number. Employees were offered a $45,000 lump-sum payment plus $500 for each year of service to walk away from their jobs. The buyout offers were not made available to employees at other Nissan manufacturing locations in North America.
The automaker is currently in the process of swiftly cutting costs to concentrate more on some production concerns. The cost cutting goal resulted to the relocation of its North American headquarters and 1,300 jobs from Gardena to Nashville in the previous year. The Japanese automaker said it offered the buyouts because of higher demand for passenger cars combined with lower demand for trucks and sport utility vehicles.
"This program has resulted in tangible benefits for employees and the company," said Dan Gaudette, the senior vice president of Nissan North American Manufacturing and Supply Chain Management. "Each person is unique, but several employees have already told us the program will allow them to return to school full-time, to start up businesses they have dreamed about or to start enjoying their retirement. It was the right program at the right time."
Buyouts have been odd among Japanese car makers with U.S. factories. Nissan said that it wanted to trim the manufacturing payroll in Tennessee because sales of labor-intensive light trucks built there were falling at the same time productivity had increased because of advances in manufacturing technology.
Nissan spokesman Fred Standish said the company does not have plans at this point to hire more employees for the plants. "The total number is good for us," he said. "We can continue producing."
Nissan Chief Executive Carlos Ghosn earlier noted a slump in U.S. sales, especially in sport utility vehicles and pickup trucks. The automaker also expects a decline in sales this year after six strong years of consecutive yearly increases.
The automaker's Smyrna facility, which is located 25 miles southeast of Nashville, is its principal North American assembly plant. It holds a total of 5,200 employees. The engine plant in Decherd, with 1,000 workers, is about 95 miles southeast of Nashville.
The Smyrna plant manufactures Nissan Altima, Maxima passenger cars, Nissan Frontier pickups and Nissan Xterra and Pathfinder SUVs. The plant is responsible for the assembly of auto parts like the Nissan EGR valve and ensures their quality. The Decherd facility, on the other hand, manufactures engines for Nissan and Infiniti vehicles built in the United States.
Ryan Thomas is a native of Denver, Colorado. He grew up in a family of car afficionados. He now resides in Detroit where he owns a service shop and works part time as a consultant for a local automotive magazine. You can visit Nissan EGR valve for more information.
Nissan’s Market Slumps Result to Job Cuts
Amid the shrinking market, the Nissan Motor Co. has announced the slashing of up to 1,500 blue and white-collar jobs in Japan through a voluntary retirement programme for its employees. The scheme, set to begin this coming June, will be open to workers aged 45 and above in non-managerial posts, a Nissan spokesman said. It will be the very first job cut Nissan will be entertaining in its hometown.
Japan's third-biggest automaker has seen its domestic sales of non-mini vehicles dropped in the middle of tough competition thus forcing the company to announce a cutback in production at two domestic auto plants from April to June. Additionally, Nissan also closed down one of three lines at another factory in southern Japan just last September. The closure was attributed to the slow sales of the Nissan Teana high-end sedan.
The Teana, a front wheel drive mid-size car, was introduced in 2003. The car is exported as the Maxima and the Cefiro to specific markets. It shares the same platform with the North American Maxima, Altima and the Presage. Under the hood of the Teana is either the 2.3 or 3.5 liter engine which blends well to the automatic transmission. It is also equipped with trusted auto parts like the Nissan AC condenser, engines, suspensions, brakes, radiator, and more. The car is offered in four trim levels - the 230JK, 230JM, 230JS, and 350JS.
"The program will probably cost Nissan about 20 billion yen ($169 million) and we don't expect much of an impact on earnings," said Koji Endo, a senior auto analyst at Credit Suisse Group in Tokyo, who rates Nissan shares as "neutral."
"The program is part of the number of actions to boost performance," said Simon Sproule, the Nissan North America Corporate Communications Vice President. Nissan will also release 11 new or redesigned vehicles this fiscal year.
The automaker has offered a similar program in the United States, where more than double the expected number of employees accepted the package. A total of 775 workers agreed to leave the Smyrna, assembly plant and Decherd engine and transmission factory, both in Tennessee, the company said last month.
Nissan turned to buyouts after U.S. sales of its cars and light trucks dropped 5.3 percent last year to 1.02 million and that is its first annual decline since 2001. Nissan's U.S. sales increased by 3.2 percent during this year's first three months. The U.S. accounts for almost 30 percent of the automaker's global sales.
Nissan, held 44 percent by Renault SA of France, introduced a few new models last year. Moreover, it endeavors to produce new product lines soon. Also, the automaker recently cut jobs in the US, where its sales slumped last year, where it said 775 workers at two Tennessee plants had accepted voluntary retirement last month.
Chief executive Carlos Ghosn had promised last month to draw up additional measures to help Nissan meet its targets, but the company has missed the targets. Nissan slashed its annual profit forecast after seeing a 22 percent decline in earnings in the October-December quarter. The backtracking forced Ghosn to declare his company in a "performance crisis."
Earlier this month, Nissan said it may miss a key sales target it aimed to hit next fiscal year, in another blow to Ghosn's comeback plans. The Japanese automaker is aiming to sell 4.2 million vehicles worldwide in the fiscal year ending March 2009 as part of its three-year revival plan.
But weak performance in 2006, blamed on a dearth of new products in North America and slow sales in Japan, may mean it might take longer to meet the target, said a Nissan spokeswoman who spoke on condition of anonymity.
The company is due to announce full-year results and updates to the "Nissan Value-up" business plan on April 26.
About the Author
Ryan Thomas is a native of Denver, Colorado. He grew up in a family of car afficionados. He now resides in Detroit where he owns a service shop and works part time as a consultant for a local automotive magazine.
What is the max output/RMS power of a 1997 Chevrolet cavalier factory AM/FM/Cassette Head unit?
What is the maximum output power/RMS power of a 97 cavalier factory Delco Electronics AM/FM/cassette Head unit
15 watts
Community fundraisers, drives and donations
Enjoy an evening bidding on silent auction items with 100 percent of the proceeds to be donated to flood victims. The event takes place from 6 to 9 p.m. May 14 at the Wang Foundation & Wang Vision Cataract & LASIK Center at 1801 West End Ave, Suite 1150, in Nashville. For more information, call 321-8881, ext. 226, e-mail Ashley@wangvisioninstitute.com or visit ...
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