Nissan’s attempt to slash costs amid a protracted sales and profit slump will mean the end of two regional offices in the United States.
The news comes after a slew of measures aimed at reining in spending, the most recent of which was a buyout package offered to U.S. employees over the age of 52. With two years of declining sales on its ledger, the automaker figures fewer vehicles sold should result in fewer offices.
In a letter to dealers seen by Automotive News, Nissan states that, starting July 1st, its sales offices will be pared down from eight to six. Gone are the Northwest and Mountain region offices.
“Like many other automotive companies, Nissan North America is taking proactive steps to assess our structure, workflow and operational efficiencies amid a challenging industry environment,” Senior Vice President Airton Cousseau said in the letter.
Cousseau wrote that the “leaner” organization would still provide dealers with “all the support you need.”
Not included in the letter was any mention of how many employees opted for the buyout package, or whether involuntary departures are in the works to cut overhead. Naturally, some dealers aren’t happy with the prospect of forming new relationships, claiming the support Cousseau mentioned wasn’t available in great amounts.
As Nissan holds firm on its goal of reducing rental and fleet deliveries while also cutting back on incentives, the need to free up money elsewhere in the business has seen it take increasingly harsh triage measures. Among them, a sizeable reduction in the amount of employee travel. Last month, U.S. Nissan workers experienced a two-day furlough.
On the product side, recent introductions, such as the 2020 Sentra and the refreshed Titan and Titan XD, reveal a push for fewer build configurations.
[Image: Nissan]
I wouldn’t assume companies still had that many regional sales offices in this electronic age.
I am also still unsure why Nissan needs both a Titan and Titan XD.
I never quite understood the Titan XD. It’s not quite a 3/4 ton 2500 series truck like a GM, Ram and F-series Heavy duty but a beefed up 1/2 ton. I guess they wanted to create their own niche.
Psst. Car journo guy. The Titan XD has been dead for months.
Psst ignorant commenter who freebases condescension: Titan XD refreshed for 2020, drops diesel engine.
https://www.google.com/amp/s/www.motor1.com/news/363767/refreshed-nissan-titan-loses-diesel/amp/
They should ditch the Titan completely.
Keeps the bureaucracy alive and humming along. I’m still amazed at the number of Honda and Toyota offices in the middle of nowhere Indiana, Ohio, and Kentucky and left wondering what they actually do?
Yes, there are times when all you have left to cut is muscle, but in this case, a little lipo might be needed first.
There are NO buyout offers being made to the Nissan direct employee workers (legacy workers) here in Smyrna Tn., this is per 3 friends I have working there, one on supervision !
I was involved with a buyout program. It was a selective program. Per the announcement I should of gotten an offer but didn’t. I asked my boss and they said they wanted me to stay. Those that were offered weren’t the best and brightest, imho.
Taking measures after a sales decline is kind of the definition of not taking proactive steps……
Having read about their crappy CVTs, I’d say they’ve been in cost-cutting mode for a long time.
No secret I am a Nissan fan these days. I bought a Versa Note for my wife a couple of years ago and she and I both like it. We don’t put a lot of miles on our cars but the time I have spent behind the wheel has been OK. It’s not a performance machine and I certainly don’t drive it that way, but it is absolutely good at being what it is supposed to be – a decent little econo-box.
One downside, I dislike the way the CVT clutches seem to work, i.e. mild engine braking up to a stop and then disengaging right before the full stop is accomplished. It’s not a big deal if you come in hard on the brakes and keep lots of pressure on the pedal, but if you like long smooth stops – like I do – the car doesn’t roll to a stop in an easily predictable manner. Even under light braking there is a noticeable jerk when this happens. That’s irritating and Nissan would do well to exorcise that issue from future vehicles.
I had our note over at the Nissan dealer this weekend for a software update and one of its free oil changes (it’s first) and, while I was waiting around, played around in a 2020 Versa on bright blue. It was a sedan and, I think, it looked really good. In 2018 I would never have purchased a Versa sedan – they looked all wrong, but I’ve always liked the JDM Note hatches. For less than 20K, it was, I think, an impressive little thing.
Cost cutting may be in order, but I think Nissan can survive. Its cars look good IMO and I think, were they packing a regular-old four or five speed auto no one would be squaking at all. Here’s hoping the manage to make it back to where they were circa 1990.
I missed the original “age 52 buyout” story, but I’ll comment here.
Being 56, I find that ominous – a bit of a “Logan’s Run” scenario, if you will. If they really whack those people, they will be eliminating probably half of the experience in those offices. Of course, Nissan is looking at short-term survival, but also at the cost of future 401k contributions, vacation days, and medical costs associated with the older workers.
While it is possible some of the older generation were part of the problem, it is also possible they could be part of the solution. (Ironically, I’d almost guarantee that the decision-makers there are over 52, and they will keep their jobs.)
In a few years, Nissan might be leaner, but it might also be dumber.
SCE to AUX:
Unfortunately, Nissan is not alone in the buyout craze.
Age limits differ, some add further conditions like “10+ years on the job”.
And then corporations wonder how come employees are no longer “loyal”
And all of the troubles at Nissan started AFTER Ghosn was arrested?
Sure, Carlos.