Nissan Overwhelmed by U.s. Workers Taking Buyout Offers

The Nissan North America Inc. said that 775 workersAmerican Manufacturing and Supply Chain
at its vehicle and engine plants in Tennessee, whichManagement. “Each person is unique, but several
equates to around 12 percent of the factories'employees have already told us the program will
combined payroll, had accepted a company buyoutallow them to return to school full-time, to start up
plan. Initially, Parent Nissan Motor Co. only expectedbusinesses they have dreamed about or to start
about 300 of the 6,200 factory workers to take theenjoying their retirement. It was the right program at
buyouts but the real numbers astounded thethe right time.”
automaker.Buyouts have been odd among Japanese car makers
Nissan said that 681 employees at its plant in Smyrnawith U.S. factories. Nissan said that it wanted to trim
and 94 employees at Decherd decided to takethe manufacturing payroll in Tennessee because sales
advantage of the offers. Retirements accounted forof labor-intensive light trucks built there were falling
303 of the combined number. Employees wereat the same time productivity had increased because
offered a $45,000 lump-sum payment plus $500 forof advances in manufacturing technology.
each year of service to walk away from their jobs.Nissan spokesman Fred Standish said the company
The buyout offers were not made available todoes not have plans at this point to hire more
employees at other Nissan manufacturing locations inemployees for the plants. "The total number is good
North America.for us," he said. "We can continue producing."
The automaker is currently in the process of swiftlyNissan Chief Executive Carlos Ghosn earlier noted a
cutting costs to concentrate more on someslump in U.S. sales, especially in sport utility vehicles
production concerns. The cost cutting goal resultedand pickup trucks. The automaker also expects a
to the relocation of its North American headquartersdecline in sales this year after six strong years of
and 1,300 jobs from Gardena to Nashville in theconsecutive yearly increases.
previous year. The Japanese automaker said itThe automaker’s Smyrna facility, which is
offered the buyouts because of higher demand forlocated 25 miles southeast of Nashville, is its principal
passenger cars combined with lower demand forNorth American assembly plant. It holds a total of
trucks and sport utility vehicles.5,200 employees. The engine plant in Decherd, with
“This program has resulted in tangible benefits1,000 workers, is about 95 miles southeast of
for employees and the company,” said DanNashville.
Gaudette, the senior vice president of Nissan North