Nissan Tempts Tennessee Workers with Buyouts

If you thought it was just the Big 3 that were in trouble, it seems that any automaker stuck with big cars, trucks and SUVs in its lineup is struggling.

News about Toyota’s difficulties selling its recently redesigned larger than life Tundra pickup truck and Sequoia SUV is nothing new, and we’ve known that Japanese auto giant Nissan has been having an even tougher time talking buyers into its full-size Titan pickup truck and (it seemed a good idea at the time) Armada SUV. It appears, however, that even after offering buyout packages to plant workers last year, the company will again offer lump sum payouts along with medical benefits and car purchase plans to employees at its Smyrna production and Decherd powertrain facilities, as incentives to get them to leave.

Last year’s buyout program prompted 775 employees to take the leap, a low number that was a direct reflection of the $45,000 payout and additional $500 for every year of service. This time around, however, Nissan should attract more workers to take the leave it and lump it program, as its sayonara incentive starts at a much more enticing $100,000.

Nissan spokesperson Fred Standish has been reported as saying that the Tennessee plants need to reduce staff by some 1,200 employees due to “market realities”.

Nissan workers don’t need to make up their minds today, however, as the packages allow for a three-year window of opportunity, although the highest payouts will be given to employees who opt in to opting out this year.

And which vehicles are the slow sellers causing the problems in the first place? Once again the majority are trucks and SUVs, as Smyrna builds the midsize Frontier pickup truck, midsize Xterra 4×4 and slightly larger Pathfinder SUV. The Altima and Maxima models are also built there, but it’s unlikely the former, at least, is the root of Nissan’s most recently challenges. An all-new Maxima is starting to arrive in dealerships soon, and therefore should help to boost output somewhat, but compared to the Altima it’s not considered to be a high-volume seller.