As significant new tariffs hit the automotive sector, virtually all car manufacturers are striving to lessen the burden, though not entirely eliminating it. According to a recent report, Nissan is among the companies planning to shift their manufacturing operations with the aim of reducing tariff impacts on both their profitability and consumer prices.
This represents a significant turnaround for the beleaguered brand. Earlier this year, reports indicated that Nissan planned to cease U.S. manufacturing of its popular model. Rogue As the construction expenses in Tennessee turned out to be excessively high, the company can now reinstate a second shift, thereby increasing production within the United States.
Rogue Production Ocean Hopping
The report originates from a Japanese newspaper. Nikkei It states that rather than reducing Rogue production in the U.S., Nissan will decrease output in Fukuoka. Earlier this year, Nissan had announced their plan to do so. reduce manufacturing of the Rogue in Smyrna To only change one production line, rather than obtaining the required amount of its SUVs from that Japanese facility.
Last year, Nissan sold roughly 920,000 vehicles in the U.S. According to Nikkei, about 16 percent of these sales comprised Japanese imports. In addition to the Rogue, Nissan also produces the Leaf here. Pathfinder , with Murano produced at its facility in Smyrna, along with the Infiniti QX60. Additionally, an assembly plant in Canton, Mississippi, manufactures the Altima And Frontier. Last year, the car manufacturer brought in 300,000 vehicles from Mexico, which included models like the Kicks, Sentra, and Versa. These represent their more budget-friendly options, and lately, there has been an increase in demand for newly released inexpensive cars.
Production Modifications Might Occur This Summer
The reports indicated that the shift in production won’t occur immediately. It’s scheduled to begin as soon as this summer. This indicates both the challenges associated with significant adjustments in production and possibly the expectation that a resolution to the ongoing U.S. trade conflict with various nations might be reached sooner rather than later.
Last week, Nissan discounted the prices of both the Rogue and Pathfinder For the midpoint of 2025, both popular SUV models experienced price cuts of around $2,000 each. This adjustment was made by the automaker in response to changing market dynamics and consumers growing more conscious about pricing.
Nissan's Smyrna plant is capable of manufacturing as many as 640,000 cars annually, rendering it among the biggest automobile production sites in North America. Since opening its doors in 1983, this facility has rolled out its 15 millionth car over the past year. Around 8,000 individuals work within these premises, supporting numerous additional jobs through their connections with local suppliers and associated businesses. Additionally, close by in Decherd lies a motor factory owned by Nissan that has assisted in producing approximately 13 million motors destined for vehicles globally.
There has been no update regarding whether this impacts Nissan's intentions to construct its newest small SUV, known as the PZ1L. The electric vehicle was scheduled to be built in Canton However, an earlier report this year indicated that it was planning to shift its operations to England.
Source: Reuters