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Report: Nissan plans 2-day US production halt in January

Nissan Motor Co. Ltd. is planning to halt production lines at its U.S. factories for two days in January, Automotive News reported Dec. 5, citing an internal memo to employees.

Nissan plans to suspend operations at its headquarters in suburban Nashville, Tenn., and assembly plants in Smyrna and Decherd, Tenn., and Canton, Miss., from Jan. 2 to Jan. 3, 2020, with employees forgoing pay, Automotive News said.

Nissan North America Inc. Chairman Jose Valls reportedly told staff to brace for a 9.2% pay cut in January for those paid monthly, while employees who are paid biweekly will not be paid for those two days.

It comes as the Japanese carmaker works to cut costs and improve its profitability in the U.S. amid weakening sales. Earlier in November, Nissan trimmed its full-year outlook after its fiscal second-quarter profit plunged 54.8% year over year.

"While we've made some positive progress, Nissan's performance has fallen short of our expectations," Valls reportedly said in the memo.

Nissan did not immediately respond to S&P Global Market Intelligence's request for comment. However, it did confirm the temporary closures to Reuters, saying it would implement a two-day closure to "optimize business performance and competitiveness."