Nissan is set to decrease production of its best-selling U.S. vehicle, the Rogue SUV, in Japan between May and July, according to a source familiar with the situation. This change marks yet another adjustment by an international automaker in reaction to new U.S. import tariffs.
The imposition of a 25% tax on overseas vehicles by U.S. President Donald Trump has disrupted the global automotive supply chain. As Japan’s third-largest automaker, Nissan faces significant challenges, especially since the U.S. represents its largest market, accounting for over 25% of the company’s vehicle sales last year, many of which are manufactured in Japan or Mexico.
The automaker intends to cut production of the Rogue by 13,000 units at its Kyushu plant in southwestern Japan during the three-month timeframe. This reduction amounts to more than 20% of the 62,000 Rogues sold in the United States in the first quarter of this year, as reported by the anonymous source.
Employees at the Kyushu facility, Nissan’s largest production site, will experience reduced working hours between May and July, with some days seeing a complete halt in production. However, the plant will maintain two daily shifts, the source indicated. The company plans to reevaluate the production scenario later based on the evolving tariff situation.
On Monday, Trump mentioned he was contemplating adjustments to the auto tariffs, acknowledging that automakers “need a little bit of time”.
Nissan stated that it is analyzing its production and supply chain strategies to discover the most efficient and sustainable solutions. The manufacturer emphasized its commitment to adapting to market fluctuations while also prioritizing its workforce and production capabilities.
“Our strategy will be careful and considerate as we address both immediate and long-term impacts,” the statement added.
Reassessment
Last year, the Rogue was Nissan’s most popular model in the U.S., with sales nearing 246,000 units, which represented more than a quarter of the automaker’s total sales in the country. Additionally, Nissan produces Rogue models in Smyrna, Tennessee.
This announcement follows Nissan’s recent decision to reverse a prior plan to reduce output at Smyrna, confirming that it will sustain two shifts for the Rogue instead of the previously planned single shift for April.
Other automotive manufacturers are also adjusting their strategies to cope with the tariffs, which Trump claims will enhance U.S. manufacturing and employment.
Stellantis, the parent company of Chrysler, reported that it is halting production at plants in both Mexico and Canada, which affects five associated facilities in the U.S. and results in the temporary layoff of 900 American workers.
Honda has opted to produce its next-generation Civic hybrid in Indiana instead of Mexico, aiming to avoid potential tariff implications, as reported by Reuters.
Even ahead of the tariff implementation, Nissan had been planning to reduce its global production capacity by 20% as part of a restructuring initiative.
New CEO Ivan Espinosa faces mounting pressure to steer the company toward recovery, particularly in the U.S., where sales have been affected by an aging product line and a deficiency of hybrid models. In the last financial year, Nissan adjusted its profit forecasts downward three times.