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Japanese automaker Nissan Motor Co announced a two-day operations halt for its US unit next month, as the automaker alleviates the drop in profitability in the US.
Nissan’s overall profits fell sharply this current fiscal year, affected by dropping sales in US and China as well as a stronger yen in the foreign exchange market. The company has been attempting to reverse these losses by cutting costs in production. It recently slashed its operating income forecast down to an 11-year low.
“To optimize business performance and competitiveness, Nissan North America will implement two office closure days in the US on January 2 and January 3, 2020,” Nissan said in a statement.
The company said that the two-day closure would not affect its dealers, including in its Infiniti brand.
Automotive News reported that Nissan’s US unit will have its employees unpaid on the two-day operations halt, as well as cut employee travel expenses by 50% effective immediately. The announcement was delivered to its US unit employees through a memo.
The closure will include Nissan headquarters in Nashville and assembly plants in Decherd and Smyrna, Tennessee and Canton, Mississippi.
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