Slumping truck and SUV sales have prompted Nissan North America – one of the pioneers of Japanese vehicle assembly in the US – to offer a new ‘voluntary transition (severance) programme (VTP) to both blue- and white-collar workers at its Symrna vehicle assembly and Decherd engine plants in Tennessee.
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The move, just days after the automaker opened a new head office after its recent relocation from California, offers employees a lump sum of US$100,000 or $125,000, depending on length of service, plus medical and car purchase benefits.
“Rising fuel prices and a downturn in the economy have caused a dramatic slow-down in sales of full size trucks and SUVs. Nissan must adjust to the ongoing market conditions in order to remain competitive. As a result, the Smyrna plant is eliminating its night shift truck production, effective 11 August,” Nissan said.
“We feel this programme is a good opportunity for employees wanting to transition to another phase in life,” said manufacturing and supply chief Bill Krueger. “This will provide many with the financial means to take a step they otherwise might not have been able to take.”
The automaker said productivity gains at both “continue to outpace low employee attrition levels”. The programme would reduce employment levels in a way that benefits them and meets the company’s staffing requirements for manufacturing.
The latest programme spans three years but employees must decide by 12 September if they would like to participate in fiscal year 2008, 2009 or 2010. They will be able to sign up again in 2009 or 2010 but benefits will be reduced.
Nissan employs about 5,500 in Smyrna and around 1,100 in Decherd. It offered a less generous severance package last year and said that “was well received”.
“The marketplace is changing and Nissan’s North American manufacturing operations must change with it to remain competitive,” Krueger added.
Employees at Nissan’s other plant in Canton, Mississippi are not affected. Nissan earlier axed one shift of truck production there but added a third shift of Altima sedan production, reflecting the trend in the US to more fuel-efficient vehicles spurred by high fuel prices.
