Nissan Motor plans to cut around 1,000 jobs in Thailand, according to unconfirmed local reports, as part of a global restructuring plan announced earlier this month that included 9,000 job cuts worldwide – after the Japanese company posted worse-than-expected financial results for the segment. -year period ending September 2024.
Nissan has lost much of its market share in Southeast Asia in the past few years and has been reducing its manufacturing base in the region to reduce excess capacity. Increasing competition from Chinese automakers over the past two years has accelerated this decline.
According to local reports, citing undisclosed sources, Nissan plans to temporarily halt production at Plant No. 1 and included production in Plant No. 2 of it in September 2025.
A company spokesperson confirmed that while “partial consolidation” is still underway at its Thai plants, this is to upgrade production equipment and that the company has no plans to permanently close one of the country’s two car assembly plants, adding that “Plant No. 1 continues to operate as the largest production facility in Thailand.”
Nissan’s two Thai plants are located in Samut Prakan province. Plant No. 1 has an annual production capacity of 220,000 units while Plant No. 2 can make 150,000 units. Together they produced about 102,000 cars last year, while only 16,420 were sold in the country.
Nissan has reported separately that it expects about 6% of its US workforce, or 1,000 workers, to leave by the end of the year after accepting the company’s early retirement plan. As of the end of March 2024, the company employed approximately 17,000 people in the US.
“Nissan denies plans to close Thai plant” was originally published by Just Auto, a brand owned by GlobalData.
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