Automotive companies are currently facing significant pressure due to a global sales slump, and cost-cutting measures continue to be the main option.
After Ford shocked the world by announcing the layoff of 4,000 workers in Europe, Nissan is now laying off or relocating about 1,000 workers in Thailand.
The move is part of Nissan's global plan to cut costs after recording worse-than-expected financial performance.
Nissan also plans to combine the operations of its two factories in Samut Prakan, Thailand, namely Plant No. 1 and No. 2, by September 2024.
While Plant No. 1, which has a production capacity of 220,000 units, will continue to operate, the decision was made following a 30% drop in sales in Thailand last year.
Nissan is also facing stiff competition from Chinese manufacturers such as BYD and SAIC, which are increasingly dominant in the electric vehicle (EV) market.
Meanwhile, Mercedes-Benz is also joining the cost-cutting measures by planning to cut costs by several billion euros each year.
However, the German company has not disclosed details of the cost-cutting measures, including possible job cuts.
The moves by Nissan and Mercedes-Benz reflect the global pressure facing the automotive industry to remain relevant in a rapidly changing market, especially with the massive shift towards electric vehicles (EVs).
Is this a sign that more automotive companies will face similar pressures?
