Nissan Thailand denies complete shutdown, only partially

Nissan Motors is slashing jobs and scaling down operations in Thailand as it grapples with declining market share and increased competition from Chinese automakers.

In a dramatic twist to its global restructuring plan, unconfirmed local reports suggest the Japanese car giant is planning to cut around 1,000 jobs in Thailand—part of a worldwide layoff affecting 9,000 employees announced earlier this month after Nissan’s financial performance failed to meet expectations.

The shakeup comes as Nissan struggles to hold its ground in Southeast Asia, where it has lost significant market share over the past few years. To rein in costs and reduce overcapacity, Nissan has been scaling down its regional manufacturing presence. The latest move will reportedly involve partially halting production at its Plant No. 1 in Samut Prakan, with production being consolidated at Plant No. 2 by September 2025, according to local sources.

A Nissan spokesperson confirmed the partial consolidation, attributing it to an upgrade in manufacturing equipment rather than a complete shutdown. The spokesperson reassured that “Plant No. 1 continues to operate as a major production site in Thailand,” dismissing rumours of its permanent closure.

With Plant No. 1 capable of producing 220,000 units annually and Plant No. 2 producing up to 150,000, Nissan’s production potential in Thailand remains robust. However, in 2023, the two plants produced just 102,000 vehicles, while local sales hit a modest 16,420 units—a stark reflection of the challenges facing the brand in Thailand.

Across the globe, Nissan’s struggles continue, with approximately 6% of its US workforce, about 1,000 employees, expected to take early retirement by year-end as part of broader cost-cutting measures. For Nissan, the road to recovery in both Southeast Asia and beyond remains uncertain as the automaker navigates turbulent market waters, reported Just Auto.

ORIGINAL STORY: Revving down: Nissan shifts gears with Thai job cuts

Nissan Motor Corporation is gearing up for a major reshuffle in Thailand, as the automotive giant plans to slash or relocate around 1,000 jobs amidst its sweeping global workforce reduction strategy.

This hard-hitting news comes from insider sources who leaked the story to Reuters, albeit under the cloak of anonymity due to their lack of authorisation to go public.

The under-fire carmaker is set to partially halt operations at its Thailand Plant No. 1, out of the two assembly plants in the country. The remaining production efforts will be shifted to Plant No. 2 by next September. While a Nissan spokesperson refused to dish out details on potential job cuts, they did confirm the ongoing consolidation aimed at upgrading facilities, with no plant set to close.

In an attempt to keep spirits up, the spokesperson assured the press, “Plant No. 1 continues to operate as our major production site in Thailand.”

This dramatic shake-up follows Nissan’s announcement earlier this month of plans to slash 9,000 jobs globally after reporting disappointing half-year earnings. Over in the United States, a slice of the workforce, around 6%, is tapping out early with retirement packages at the ready.

Located in Samut Prakan province, just outside bustling Bangkok, these Thai plants boast significant production capacity—Plant No. 1 can churn out 220,000 units at full throttle, while Plant No. 2 can handle 150,000, making Thailand Nissan’s heavyweight champion in Southeast Asia.

However, storm clouds loomed as sales took a nosedive by 30% to about 14,000 units in the last financial year ending March. Despite Japanese automakers like Toyota and Honda traditionally ruling the Thai roost, the tide is turning with the rapid rise of Chinese competitors such as BYD and SAIC flexing their electric vehicle muscles.

Not just a local affair, these plants also manufacture export-worthy SUVs, including the Kicks model for neighbouring Southeast Asian markets and the Terra for the Middle East and Africa, marking Thailand as a crucial cog in Nissan’s international machine.

Fear and uncertainty grip the Thai workforce, as the countdown begins to see who will be left standing when the dust finally settles.