Troubled Nissan announced plans yesterday to cut production of two models that make up more than 40% of its U.S. sales. The move comes as the company trims operations during merger negotiations with rival Honda.
Nissan’s two best-selling products in the U.S. are the Rogue compact SUV and Altima midsize sedan. The Rogue finished 2024 as the ninth best-selling vehicle in America (see the top 25).
However, Nissan suffered a brutal 2024, seeing its operating profits shrink by 90% in the first six months of the year alone.
The company announced a plan to slash 9,000 jobs globally as part of an attempt to stabilize before merger talks were announced. If the merger goes through, the move will help trim excess capacity from the combined company. If it fails, it will help Nissan stabilize its balance sheet as it attempts to survive alone.
“Nissan does not plan to conduct involuntary layoffs,” reports Reuters. Instead, it has offered buyouts seeking employees who will leave voluntarily.
For car shoppers, the news means little in the short term. Dealers finished December with a healthy supply of both vehicles, so a production cut should not see them run short of either one soon.
Nissan dealers have been offering significant incentives to try to boost sales in recent months. The average Altima sold at a discount worth just over 10% of its price last month. The average Rogue saw a 16% incentive.
