Feeling the heat from the large-vehicle market downturn, Nissan is offering to buy out roughly a fifth of its employees at its two Tennessee plants, Decherd and Smyrna. Total, both plants employ about 7,000 workers and are primarily responsible for the production of the Nissan Frontier pick-up truck, Xterra SUV, and Pathfinder SUV.
Obviously a response to the ever-failing SUV market, Nissan’s downsizing is a far cry from similar measures from other manufacturer’s of its ilk.
Nissan’s buyouts are optional and consist of a pretty lucrative package. In addition to medical and car-purchase benefits, incentives also include a lump payment of $100,000 or $125,000, depending upon an individual employee’s tenure. Of the buyouts, Nissan spokesman Fred Standish admitted, “It’s the realities of the market. Looking at it, we decided we had about 1,200 employees in excess.”
The optional buy-outs, which began April 1, 2008, are to be offered over a three-year span that will conclude in April of 2010. With fortune favoring the bold, the earlier an employee decides to finally punch-out, the larger their severance package will be.
[Source: Automotive News]