Nissan to Cut 1,000 Jobs in Thailand Amidst Restructuring

[webfact]

File photo courtesy: NIssan 

 

Nissan is set to reduce or transfer approximately 1,000 jobs in Thailand as part of its strategic global restructuring plan, two inside sources have revealed.

 

Following the announcement of a significant worldwide workforce reduction earlier this month, this decision marks another step in realigning operations to enhance efficiency.

 

The Japanese automaker aims to consolidate its production by halting activities at its Thailand Plant No.1, one of two car manufacturing sites in the country.

 

Operations will be merged into Plant No.2, with the full transition expected by September next year. The sources, who preferred to stay anonymous due to confidentiality agreements, shared these plans, while a Nissan spokesperson declined to comment specifically on the job situation.

 

However, the spokesperson mentioned that the consolidation process involved equipment upgrades without closing any facilities in Thailand.

 

This move aligns with Nissan’s recent announcement to cut 9,000 jobs globally, after reporting less-than-stellar half-year financial results. In the US, approximately 6% of local staff have opted for voluntary retirement as part of the restructuring.

 

Located in Samut Prakan, the two Thai plants have substantial production capacities, having enabled Nissan to become a major player in Southeast Asia.

 

While Plant No.1 boasts a capacity of 220,000 units annually, Plant No.2 produces up to 150,000 units. Despite their strong presence, Nissan's sales in Thailand declined 30% to roughly 14,000 units in the last financial year ending March.

 

This restructuring comes amid rising competition from Chinese car manufacturers like BYD and SAIC, who are rapidly expanding their electric vehicle line-ups.

 

Nissan's Thai plants also manufacture SUVs like the Kicks and Terra, primarily targeting the Southeast Asian, Middle Eastern, and African markets, reported Bangkok Post.

 

-- 2024-11-23

 

 

[ikke1959]

And the THB is getting stronger and stronger....I wonder why because you don't read a lot of positive news about economics of Thailand