Toyota however stated that they were sorry to hear Nissan had to let go of nearly 1,300 employees when they relocated out of Texas and were looking at ways to prevent this from happening again.
However, minor loss is unavoidable due to circumstantial pressure, even though statistics show that Nissan’s loss was not too great to bear. An independent research stated that nearly 54 percent of personnel refuse to move out, when their employer has to relocate. This figure has increased in recent times. Hence, there are not many options left, but to let go of a few.
Nissan, however say that when they moved out in 2006, experts suggested at catastrophic losses, which were avoided for best results. People take this opportunity to either retire or get promoted. Ex Nissan employees, who were a part of the Japanese firm when they moved out, say that, many were reluctant to offer the relocated packages that the company was willing to provide, while others took this chance to retire or relocate to other companies.
Hence, it will be unfair to pin the entire blame on Nissan. Despite popular beliefs that Nissan would lose out on public trust, in this part of the world, the company has grown steadily. Nissan is currently headquartered in Nashville, with a work force of 1,700 and have recorded major leaps, within the past 8 years.
The company now has a strong force of share holders, while vehicle manufacturing plants are being setup and improved, to enhance original production capacity. The company has also hired strongly and they are currently in possession of one of the strongest and most loyal work force in North America. Toyota hopes to record a rerun, as they move out of Texas.
California has a specific kind of work force, which enhances growth. This is evident in Nissan’s footprint, as they prove to have been doing quite well for themselves, even after 8 years of moving out. The event was still quite unfortunate, but was necessary under those circumstances. People are aware of these problems and seem to have gotten over it. Relocation is always hard for a company and its personnel, both in terms of financial and personnel loss.
Toyota will have to face some of these problems too. Nissan had received $197 Million as part of its relocation process, which included financial help, along with provisionary work force, needed to set up shop. Employees received full payments, before they were asked to shift to Nashville with their families. Nissan took care of transportation and accommodation too. Nissan moved out as they wanted to cut out a part of its operation, Toyota will change the work culture in North America.