Nissan's Strategic Shift: Cutting U.S. Production and Collaborating with Honda

Nissan is reducing production at its U.S. plants as part of a global effort to enhance profitability, affecting 9,000 jobs worldwide. The Japanese automaker aims to make operations more agile and is also planning a future collaboration with Honda to focus on electric vehicles, targeting completion by 2026.

Nissan is undertaking significant strategic changes in its U.S. operations by reducing production as part of a broader global effort to boost profitability. This initiative includes reducing 9,000 jobs worldwide, with specific impacts on plants in Tennessee and Mississippi where production will be streamlined.

The cuts are part of Nissan's plan to slash global production capacity by 20%. The workforce reduction aligns with its target of becoming more efficient and adaptable to market changes. Nissan is also collaborating with Honda for the development of electric vehicles, with a joint holding company anticipated by 2026.

Nissan forecasts financial results for its October-December quarter will be unveiled in February. Meanwhile, shares have responded positively, with a 2% rise following news of the operational changes in the U.S.

(With inputs from agencies.)