Nissan is set to decrease production of its best-selling U.S. vehicle, the Rogue SUV, in Japan from May through July, according to an insider source. This adjustment comes as the latest shift among global automakers responding to newly implemented U.S. import tariffs.
The imposition of a 25% tax on vehicles manufactured abroad by President Donald Trump has significantly disrupted the international automotive supply chain. As Japan’s third-largest automotive manufacturer, Nissan faces greater challenges compared to some competitors, primarily because over a quarter of its vehicle sales last year occurred in the U.S., with a significant number produced in Japan or Mexico.
During this three-month period, Nissan is expected to cut production of the Rogue by 13,000 units at its Kyushu facility in southwestern Japan, as noted by the source who wished to remain anonymous due to the confidential nature of the information. This reduction accounts for more than 20% of the 62,000 units of the Rogue sold in the U.S. during the first quarter of this year.
At the Kyushu plant, Nissan’s largest manufacturing site, employees will have reduced working hours from May through July, with some days designated for complete production halts, according to the insider. Nonetheless, the plant will maintain operations on two shifts daily. The automaker plans to evaluate its production strategy later, contingent on future tariff developments.
On Monday, Trump mentioned he was contemplating modifications to the auto tariff, noting that automakers “need a little bit of time.”
Nissan, in an official statement, highlighted that it is assessing its production and supply chain practices to discover the most effective solutions for efficiency and sustainability. The company reaffirmed its dedication to adapting to market dynamics while prioritizing workforce and production capabilities.
“Our strategy will be carefully considered as we address both immediate and long-term impacts,” the statement said.
Recap
The Rogue was Nissan’s leading model in the U.S. last year, with approximately 246,000 units sold, constituting more than a quarter of the company’s total vehicle sales in the U.S. Additionally, Nissan manufactures Rogue vehicles in Smyrna, Tennessee.
This recent decision follows Nissan’s earlier reversal this month regarding plans to reduce output in Smyrna, where it opted to continue operating two shifts for the Rogue instead of cutting to one as initially planned for April.
Other manufacturers are also grappling with the effects of these tariffs, which Trump claims will enhance U.S. manufacturing and job opportunities.
Stellantis, Chrysler’s parent company, announced it is halting production at one plant in Mexico and another in Canada, affecting five interconnected U.S. facilities and resulting in the temporary layoff of 900 American employees.
Honda has reportedly decided to produce its upcoming Civic hybrid in Indiana to evade potential tariffs, instead of manufacturing it in Mexico.
Even prior to the new tariffs, Nissan had aimed to reduce its global capacity by 20% as part of a broader restructuring initiative.
New CEO Ivan Espinosa is facing pressure to steer the automaker back on course, particularly in the U.S. market, where the company’s performance has been challenged due to an aging vehicle lineup and a lack of hybrid options. In the past financial year, Nissan revised its profit forecasts downward three times.