TOKYO (AP) — Nissan Motor Corp. has announced significant production cuts at its U.S. plants and is offering buyouts to factory workers as part of its urgent strategy to restore profitability. This initiative aligns with the company's global restructuring plans which were disclosed two months ago, aiming to eliminate approximately 9,000 jobs worldwide, including in China, following a quarterly loss attributed to declining sales and excess inventory.

At the Nissan plant in Smyrna, Tennessee, the company will keep one production line operating on two shifts while consolidating another line to a single shift. The Smyrna facility manufactures various models, including the Murano, Pathfinder, and Rogue sport-utility vehicles, along with the luxury Infiniti QX60.

In Canton, Mississippi, where the plant produces the Altima sedan and Frontier pickup, Nissan plans to reduce the speed on one production line and consolidate another line. Meanwhile, at the Decherd plant in Tennessee, which focuses on engine production, shift adjustments will be made gradually. Some shifts will remain unchanged, while others will see a reduction by one shift.

When Nissan revealed its recovery strategy in November, specific details on the job cuts were not provided. The planned workforce reduction affects about 6% of Nissan's workforce, which totals over 133,000 employees globally. Additionally, the company is targeting a 20% reduction in its global production capacity.

Headquartered in Yokohama, Japan, Nissan stated that the buyout offers are part of the overall job reduction strategy aimed at enhancing operational efficiency and flexibility. In a company statement, Nissan emphasized that it is taking immediate global measures to revitalize its performance and establish a leaner, more resilient business model capable of swiftly adapting to market changes.

Separately, Nissan and its Japanese competitor, Honda Motor Co., are working towards forming a joint holding company to integrate their business operations, with plans slated for 2026. The partnership aimed at developing electric vehicles was first announced in March and expanded in August, with both companies intending to finalize a definitive agreement by June.

Nissan is scheduled to reveal its financial results for the October-December period on February 13. Following the news regarding the production adjustments in the U.S., Nissan shares rose by 2% during trading in Tokyo.

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Yuri Kageyama, The Associated Press