Nissan will halt its entire U.S. operation in January for two days in a bid to cut costs, Automotive News reports.
In a memo sent to employees this week, Nissan North America chairman Jose Valls said the car manufacturer will remain closed on January 2 and January 3 after the New Year’s holiday with employees forgoing pay. In addition, it will cut travel expenses by half “effective immediately.”
“While we’ve made some positive progress, Nissan’s performance has fallen short of our expectations,” Valles wrote. “I realize this news may be unsettling and that it will affect your personal lives and families.” Valls added that the move will result in a 9.2 per cent pay cut in January to Nissan’s U.S. employees paid monthly while those paid biweekly will not be paid for January 2 and January 3.
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All of Nissan’s U.S. operations will be affected. That includes the company’s Nashville headquarters, its finance arm Nissan Motor Acceptance Corp, and its two Tennessee factories and facility in Canton, Mississippi. Operations at Infiniti will also be halted for two days as will Nissan’s engineering center in Farmington Hills and a design studio in San Diego as well as numerous offices across the country.
Despite the move, a Nissan spokeswoman said the company isn’t planning any layoffs at present.
The decision comes after a dismal November for Nissan Group that saw sales for the Nissan brand fall by 13 per cent to 83,562 vehicles while Infiniti sales plummeted by 33 per cent to 9,385. This year, Nissan sales are down 6.5 per cent while those at Infiniti have dropped by 19 per cent.