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(Zero Hedge)—Nissan plans to cut 1,500–2,000 U.S. jobs and reduce production by 25% as part of a strategic review, according to GuruFocus.
It aims to close a production line at its Smyrna, TN plant by April and another at its Canton, MS plant later in the year. The company is reviewing its EV production and investment strategy.
Spokesperson Shiro Nagai stated the reports are unofficial, and Nissan declined further comment. However, it wouldn’t be an unreasonable move for the automaker which has struggled in recent years and is in the midst of considering a merger.
Recall back in late December we wrote that the struggling automaker was considering a tie-up with Honda that would make it the world’s third largest automaker.
Facing competition from EV leaders like Tesla and China’s BYD, Japanese automakers are uniting to cut costs and accelerate their transition to electric vehicles.
Honda’s president, Toshihiro Mibe, stated last month that the companies plan to form a joint holding company, maintaining their brands while Honda leads management. A merger agreement is targeted for June, with the holding company expected to list on the Tokyo Stock Exchange by August 2026.
There is still to study and discuss, Mibe said. He commented: “Frankly speaking, the possibility of this not being implemented is not zero.”
“We have come to the realization that in order for both parties to be leaders in this mobility transformation, it is necessary to make a more bold change than a collaboration in specific areas,” he added.
AP writes that a potential merger between Honda, Nissan, and Mitsubishi could create an automotive giant valued at over $50 billion, helping them compete with industry leaders like Toyota and Volkswagen.
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