Filed under: Hirings/Firings/Layoffs, Nissan, Earnings/Financials
Nissan offering buyouts to 775 Tennessee workers
Seems like few automakers are immune to downsizing these days, and Nissan is no exception. Today the automaker announced it's reducing its workforce in Tennessee by 12.5%, which equates to 775 heads. The reduction come via way of voluntary buyouts that include a $45,000 cash payment and additional $500 for every year worked. All the workers come from Nissan's two assembly plants in Tennessee, one in Smyrna where the Altima and Maxima, Pathfinder and Xterra are built, and the other in Decherd, which builds the engines to supply the Smyrna plant, as well as Nissan's assembly plant in Canton, Miss. Fortunately, 303 workers were reportedly eligible for retirment anyway and happy to take the buyout. [Source: Automotive News]
Reader Comments (Page 1 of 1)
far jr 5:33PM (3/23/2007)
That money is chicken scratch for an auto worker unless (as you said) they are ready to retire anyway or realy dislike thier job and want to go in another direction.
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Lithous 6:19PM (3/23/2007)
Are we yet another step closer to understanding that NOTHING the U.S. domestic car companies do is anything out of the norm of what any company has to do at different phases of their life span? Are the import fanboys waking up yet? Hello McFly.
Nissan did (under French rule) lay off in Japan IIRC which is not a good thing since Japan's protectionist ways usually help lessen the need for such things. So it would be expected that they would be the first Japanese car company (at least that I have heard of) to do buyouts in the U.S.
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Gary Lowe 6:50PM (3/23/2007)
Poorly built cars, built by indifferent workers who have neither the intelligence or motivation to communicate anything to top management other then their newest demand. Lousy work begets poor sales and lay-offs. It's the same story in almost every US auto manufacturers plant.
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Bryan 7:42PM (3/23/2007)
Gary it's more like poorly designed parts put together by people trying to make a living. I do not completely support the UAW, I think some are very greedy and lazy, but this is America, and we do have a lot of hard workers. Nissan chose to create vehicles with cheap, crappy parts and horrible designs. Those people just put it together for them. I mean really, look at the new Sentra! That's not the workers fault in Tennessee!!!
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ExplEngineer 8:04PM (3/23/2007)
I guess the first comment "That money is chicken scratch for an auto worker" quite accurately represents the reason for the plight of U.S. (and perhaps other nation's) automobile manufacturer. If $45k is "chicken scratch" then perhaps these workers are even more deserving of the description of being overpaid than I would have earlier expected. The cost inflation in wages, including the $1,500+/- for health benefits that exceed virtually every other employee program in the manufacturing sector clearly explains why factories are closing, and outsourcing is becoming the norm. As for poor quality products, well I cannot say for sure whether is poor quality sub-components also produced by overpaid and overprotected workers, or the ineptitude or absence of quality concerns on the part of the assembly line workers at the automotive assembly parts. These are factory workers with trade skills that have value, but not to the extent that it compromises the viability of their employers and in the end results in the elimination of their own jobs. Yes, I understand that the non-union and executive employees of the automotive manufacturers are also overpaid, provided with unreasonable perq's such as rides home to FL on the weekend in corporate jets, etc. but there is enough responsibility to go around. If quality U.S. cars would be sold for reasonable and competitive (in terms of both quality and pricing)value related price models most, if not all Americans would regain their preference for domestic vehicles that existed in the first part of the 20th Century.
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bernie 8:26AM (3/24/2007)
#4 Bryan is predictably clueless on this one, as he is on every story involving an Asian manufacturer. Nissan's supplier list in 2007 looks just like any other Asian company - I could name them and name Totota's and you couldn't tell the difference.
Honda bought a batch of fuel pump relays from a second tier supplier that could catch fire, Toyota bought sub-standard steering boxes that are costing them billions. The difference in cars is the design and the manufacturing system used to assemble them.
Go look at a Versa or Altima, then look at a Yaris and Camry; Fit and Accord and tell me there's a significant difference i interior quality. You've neer been near any of these cars in the past year, so stick to things you know something about - like the UAW.
Bryan, all you do is bash Japanese car companies, regardless of topic. I would like to see you read up and educate yourself on this industry a little before you come back and bore us again. And bring me a coffee.
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Gale 9:07AM (3/24/2007)
GaryLowe,
Nissan will make a nice profit this fiscal year - in the billions - making the company more profitable than over half of the auto manufacturers in the world. They are missing their profit targets for the first time in six years, mostly because they are selling too many truck products and were late coming out with their fuel efficient ones last year.
All of Nissan's Smyrna-built products are in the top half of their segment in JD Power Initial Quality. Most were in the top 3-4. All of their Smyrna products score highly in owner satisfaction in Auto Pacifica survey. Consumer reports rated Altima at the top of it's class in family sedans for the 4 and 6 cylinder. The Versa is selling very well and is getting great reviews.
Nissan is not doing as well as Toyota or honda. But nobody else is either. Your comment indicates you don't have a clue what's going on. You're just a Nissan hater.
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the friendly grizzly 9:08AM (3/24/2007)
I have, unlike many of you, actually been IN the Nissan plant in Smyrna, on several occasions. With the exception of the office spaces, I have been, literally, over every one of the 5.5 million square feet of the place.
What I saw was, overwhelmingly, a crew that looked like it wanted to be there. Everyone was courteous, I saw a lot of people who at least seemed to enjoy their work, and enjoy working for Nissan. In the inspection areas I saw a hell of a lot of attention to detail. This was when the hand-built 2007 Altimas were being assembled for research and the other goings-over that new models get. LOTS of care and concern for doing the job right. The overall impression I got was: these folks filled jobs for Nissan. It was not "I am entitled to this job becasue my daddy worked here, and Ron Gettlefinger SAYS I'm entitled!"
I did not see a single slacker. If a forklift was stopped, it was to drop or pick up a load, for example.
I have also been in UAW plants. While not as prevalent as has been stated by some on AutoBlog, I have seen my share of slackers, and "it's not my job" mentality. Few smiles, plenty of surliness, or outright hostility.
I am hardly a cheerleader for Nissan. They don't make a single sedan I can get in and out of comfortably. Their full-size pickup truck does not suit my needs, and the Frontier drinks every bit as much gas as my full-size Chevy, so I have no interest in it either. But I could not let #4's remarks go unanswered.
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owen 9:33AM (3/24/2007)
bryan is the type that blast every thing not american,one of those redneck types who believe ,god bless america and f-ck the rest of the world.
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far jr 10:26AM (3/24/2007)
You all are being quite hard on Bryan... He is not the one buying out employees, Nissan is. They already had several that did not make the move to Tennessee from California. Now they are getting rid of more. This is positive for long term financial reasons at Nissan... similar reasons for domestics.
Grizzly... I'm curious. I know the Nissan plant was in Tennessee. Where was the UAW plant you were in? I have seen both ends of the spectrum you describe in the company I work for. Big differences from region to region all within the same company.
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Bryan 2:52PM (3/24/2007)
Hey Bernie, instead of bashing me, get to know me first. I am not a redneck. I live in Houston, Texas. The nearest "plant" is in Arlington Texas. I have been going to the Houston auto show since 1994, and have car mags from 1993 to the present. I read 7+ car sites a day. I have had plenty of experience. I have friends who have had Nissans, Toyotas, VW's, Hondas, Fords, everything. Maybe if you stop focusing on all the so called "bashing statements" and read EVERYTHING I say in other comments, you would know I am pretty fair. Nissan chose to design and acquire crappy parts for their vehicles, not the Tennessee workers. I guess you also missed the part where I think most UAW workers are greedy etc etc. Your response just shows your ignorance and laziness.
As for you Owen, same goes for you. Maybe if you took the time to read all I say, you would understand better. However, you import lovers are quite blind to reality, so I don't expect much.
Grizzly you just confirmed my statements. It's not the workers fault, its Nissan's.
Thanks Far for the support. I think we had a disagreement before but its nice to see level headed people on here once in a while!
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Nick 11:26PM (3/29/2007)
As a Nissan worker I invite anyone who says I'm " overpaid" to come do my job for a couple of days then realize how wrong you are. Nissan is a very good job and you must remember that they didn't have to buy anybody out they could have just handed out pink slips and said see you later. Without being an employee I don't see how you can have a "true" opinion. Also most of your so called domestic brands build several of their models outside of the U.S.
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