Nissan Motor Co. is eliminating a work shift at two US vehicle assembly plants and trimming its hourly staff via buyouts, a downsizing to align its output with lower sales volumes as it mulls a possible sale to Honda Motor Co.

The industry that helped turn Japan into an economic juggernaut is undergoing its biggest change in years, with two of the country’s best-known carmakers looking to join forces.

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Nissan will operate a single shift on one production line at each of its two U.S. facilities, located in Smyrna and Canton, Mississippi, according to Bloomberg. It expects to go back to a two-shift schedule when it introduces new vehicle models in 2027 and 2028. The production cuts impact the Rogue in Smyrna and the Altima in Canton.

Nissan plans to repair its flailing business without closing factories, according to people familiar with the matter, as it looks to streamline its finances before a capital tie-up with Honda.

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The company is not planning for involuntary layoffs and is part of its initiative to cut down global costs by $2.6bn.

Nissan Motor (OTCPK:NSANY) announced production and shift cuts in the U.S. as part of its strategy to push back costs amid sluggish sales. The Yokohama-based automaker is offering buyouts to workers.

Nissan failed to mention exactly when the plants will return to two shifts. However, the Smyrna site will start to build a plug-in hybrid Rogue in 2027, and this will require a second shift. The Canton site will also go back to a two-shift schedule and handle the production of an EV, likely arriving in 2028.