This article was originally published in July 2024 for the buyout slated for Aug. 1, 2024, but it has been since updated to reflect the latest buyout announced by Nissan in January 2025.
After offering a Voluntary Separation Plan (VSP) to select employees in the summer of 2024, Nissan announced in January 2025 that it is offering another VSP to certain employees within manufacturing, with a decision deadline date of March 18, 2025.
Here are the key items Nissan employees who have been offered the VSP should know.
What is the Nissan Voluntary Separation Plan?
The Nissan North America 2025 Voluntary Separation Plan (VSP) is tailored for its manufacturing salaried employees. Nissan’s goal is to put in place the right plans and structures to prepare for the future amid a challenging environment across the automotive industry.
The plan offers eligible employees an attractive separation package, allowing them to transition smoothly while providing Nissan the flexibility to restructure its workforce effectively.
Who is Eligible for the Nissan VSP
The VSP is available to certain hourly employees aged 55 or older as of May 1, 2025. Eligible employees will be notified directly and must elect to participate by 5:00 p.m. Central Time on March 18, 2025. The decision to participate is voluntary, and employees can revoke their election within the designated period.
How is the VSP Calculated?
A participant in the VSP will receive a separation pay package, the greater of:
- Three weeks of base pay for every year of service.
OR - Lump sum payout based on years of service bank:
- $25,000 for employees with less than 5 years of service.
- $50,000 for employees equal to five years but less than 10 years of service.
- $75,000 for years of service equal to or greater than 10 years but less than 15 years
- More than 15 years: $100,000
Payments are capped at the lesser of two times the prior calendar year’s earnings or $700,000.
Remember, all payments will be treated as W-2 income, meaning you will pay taxes on your VSP payout for your 2025 tax return.
How is Healthcare Treated?
Participants will have the option to continue their healthcare coverage through COBRA for up to 36 months. Eligible retirees may also opt for retiree healthcare coverage if they meet the necessary requirements.
Employment Separation Date and Lump Sum Payout
If an employee elects the VSP and it is approved, separation pay will be disbursed as a lump sum within 90 days of signing a Confidential Voluntary Separation Agreement and Release.
Participants will work with their managers to determine their Employment Separation Date, which will fall between April 15, 2025, and July 1, 2025, for production technicians and between April 15, 2025, and Aug. 1, 2025, for Maintenance Technicians.
Retirement Consultation for Nissan Employees
If you need further assistance determining if the VSP is right for you and your family, contact First Family Wealth at (615) 615-0361. If you would like to schedule a complimentary consultation, you can book time on my calendar at this link.
About the Author: Daren Chamblee
A financial advisor based in Murfreesboro, Tennessee, Daren Chamblee has nearly 15 years of experience in the industry serving clients through financial and retirement planning. Daren specializes in working with employees of Nissan North America, and he currently has more than 200 clients who are current or retired Nissan employees, giving him unique insight into the financial and retirement challenges they face. You can schedule an initial consultation with Daren by clicking here.
Investment Advisory Services are offered through First Advisors National. Financial planning services are offered through First Family Wealth. First Family Wealth and First Advisors National are not endorsed, retained, or affiliated with Nissan.
