Nissan Cuts Output (Again)
It seems that every day we are spending more time discussing news that automakers are cutting production output and are laying off workers. It is Nissan’s turn at the plate again, as today was the harbringer of doom for more production cuts. Nissan announced a reduction of 78,000 vehicles from January 2009, marking a move set to reduce industry as the world continues on the path to economic turmoil.
The company will add non-operating days and slow production lines at its factories in Japan. The car company, based out of Tokyo, released an email statement today that expressed news of the cuts and the furture plans. It will also cut 500 temporary jobs by March 31.
The job cuts mean that Nissan will no longer have any temporary positions at any of its factories by March 31, marking a fairly significant milestone in the company. The company’s domestic production cuts will increase to 225,000 vehicles for the year ending March 31, as industrywide Japanese auto sales fell 18% in November.
The cuts at Nissan cars are signficant, for sure, but other car companies in Japan are facing bigger numbers in terms of production cuts. Honda is cutting 314,000 production units worldwide and will lay off 760 seasonal workers by March 31. Toyota has not released any hard data regarding production cuts, but has announced a layoff of about 3,000 seasonal workers by March 31.
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