Nissan to Cut or Transfer 1,000 Jobs in Thailand
Nissan Motor will cut or transfer about 1,000 jobs in Thailand as part of its recently announced global workforce reduction plan, two sources familiar with the matter said on Friday.
Production Consolidation
Nissan plans to partially stop production at its Thailand Plant No 1, one of two car assembly plants in the country, and consolidate the operations into Plant No 2 by September next year, according to the sources.
No Plant Closures
A Nissan spokesperson declined to comment on the job cuts but said the partial consolidation of the plants were underway to upgrade equipment and no plant will be closed there.
“The Plant No 1 continues to operate as our major production site in Thailand,” the spokesperson said.
Global Workforce Reduction
The struggling Japanese carmaker earlier this month announced a plan to cut 9,000 jobs worldwide after posting worse-than-expected half-year earnings. In the United States, about 6 per cent of local staff there are leaving Nissan by the end of this year by accepting early retirement packages.
Thailand Operations
The two Thailand plants are in Samut Prakan province on the outskirts of Bangkok. At maximum, Plant 1 had a production capacity of about 220,000 units, while Plant 2 had a capacity of 150,000 units, making Thailand the biggest South-east Asian production hub for the company.
Declining Sales
Nissan’s sales in Thailand dropped 30 per cent to about 14,000 units in the past financial year ended in March. While Japanese automakers, also including Toyota and Honda, have dominated the Thailand market for years, Chinese makers such as BYD and Saic were emerging fast with electric vehicle options.
Export Markets
The two Thailand plants have also produced export-bound SUV models such as Kicks for other South-east Asian nations, and Terra for the Middle East and African markets.
Conclusion
Nissan’s decision to cut or transfer jobs in Thailand is part of its global effort to reduce its workforce and consolidate its operations. The company’s declining sales in Thailand and the emergence of Chinese automakers with electric vehicle options are likely contributing factors to this decision.
FAQs
Q: How many jobs will be cut or transferred in Thailand?
A: About 1,000 jobs will be cut or transferred in Thailand.
Q: Why is Nissan consolidating its production in Thailand?
A: Nissan is consolidating its production in Thailand to upgrade equipment and improve efficiency.
Q: Will any plants be closed in Thailand?
A: No, according to Nissan, no plants will be closed in Thailand.
Q: What is the reason behind Nissan’s global workforce reduction plan?
A: Nissan’s global workforce reduction plan is due to its worse-than-expected half-year earnings and the need to improve its competitiveness in the market.
