Nissan Plans to Create 1,000 Jobs in Tennessee

Apr 7, 2015

Nissan Vehicle

Nissan is looking to add 1,000 new jobs to Tennessee, thanks to a plan that calls for an expansion of the automaker’s plant located in Smyrna, according to a recent report from Daily News Journal. Under “Project Cedar” the company plans to invest $160 million into the facility and the new workers. As part of the effort, a new auto supplier park will be added. The expansion will take place in phases, with the initial one starting up in the latter part of 2015 and ending toward the end of 2016. The target to end the entire project is late 2017.

Governor Bill Haslam made the official announcement during a press conference held at the Tennessee State Capitol. He called the news a victory for the state’s automotive industry, stating that it will also expand the supplier networks in the area. For that he expressed gratitude to Nissan and its belief in the local economy.

Mary Esther Reed, the current mayor of Smyrna, was also pleased by the news. She noted that in her lifetime as a resident of the city, the population has grown significantly. That expansion and the healthy economy Mayor Reed said was largely thanks to Nissan.

So far, ten automotive suppliers have signed on to participate in the new auto supplier park. John Martin, who is Nissan North America’s vice president of supply chain management, hinted that more suppliers could jump into the project. As a result, more Smyrna residents will enjoy honest career opportunities.

Jose Munoz, the executive vice president for Nissan Motor Co. Ltd., disclosed that the project is drawing in suppliers that otherwise would not have even considered establishing operations in area. Munoz went on to say that the new project is so important to Nissan that it’s a key focus for the company’s operations in the country. The automaker has set an aggressive goal that involves capture 10 percent of the automotive market share in the United States.

The Nissan production plant in Smyrna boasts a unique position, being the most productive car assembly facility in the entire United States. Every year, close to 650,000 vehicles roll off the assembly line there. The current models assembled at the facility are the Nissan Maxima, Rogue, Pathfinder, Altima, Leaf and the Infiniti QX60. The production volume at the plant is so large that it makes up 85 percent of all Nissan cars, trucks and SUVs sold in the United States.

To help support the super active production lines, the expansion project will measure 1.5 million square feet, helping support the operations of various parts suppliers. The future auto supplier park will include an integrated logistics center. There, certain car parts will be made and stored by the different suppliers. The components will then either be sent to Nissan or other automakers’ production facilities in the Southeast.

According to Martin, the main benefit of the new supplier park will be to shorten the automaker’s supply chain. With parts suppliers located much closer to the vehicle production lines, both the cost and time involved in the assembly process of various modes will be reduced. The company has successfully implemented a similar operation at its production facility in Canton, Mississippi. The recession damaged supply chains in the state of Mississippi as parts suppliers closed down some locations. Reportedly, the result has been a better flow of parts to the assembly line as key suppliers have been located nearby.

The 1,000 new jobs will be provided by the different auto parts suppliers, thanks to Nissan’s efforts. According to the report, the average worker will earn $38,000 a year, plus benefits. That pay constitutes about $10,000 over the average wage in the country, said Chamber of Commerce President Paul Latture.

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