Nissan is set to decrease production of its best-selling SUV in the United States, the Rogue, during the period from May to July, according to a source familiar with the situation. This adjustment follows recent import tariffs implemented by the U.S. government and marks another shift in the global automotive sector.
The 25% tariff on vehicles manufactured abroad, announced by U.S. President Donald Trump, has significantly disrupted the global automotive supply chain. As Japan’s third-largest car manufacturer, Nissan is particularly susceptible to these changes. The U.S. market represents over 25% of Nissan’s sales, with a considerable number of vehicles produced in Japan and Mexico.
During the specified timeframe, Nissan intends to cut production of the Rogue by 13,000 units at its Kyushu plant in southwestern Japan. This reduction amounts to over 20% of the 62,000 Rogues sold in the U.S. during the first quarter of this year, as revealed by the anonymous source.
Employees at the Kyushu facility, Nissan’s largest, will experience reduced working hours from May through July, with some days designated for no production. However, the plant will continue to operate with two shifts each day. The company plans to evaluate its production capabilities and make future decisions based on the evolving tariff situation.
On Monday, Trump mentioned he is contemplating adjustments to the auto tariffs as automakers “require additional time.”
Nissan released a statement indicating it is assessing its production and supply chain strategies to enhance efficiency and sustainability. The company emphasized its commitment to adapting to market dynamics while focusing on its workforce and production ability.
“Our strategy will be methodical and considerate as we manage both short-term and long-term impacts,” the company stated.
Background
The Rogue was Nissan’s top-selling vehicle in the U.S. last year, with sales reaching nearly 246,000 units, making up over 25% of the company’s total vehicle sales in the U.S. The Rogue is also manufactured in Smyrna, Tennessee.
This latest development follows Nissan’s recent decision to maintain two shifts for the Rogue at its Smyrna plant instead of reducing it to one shift as previously planned for April.
Other automakers are also adjusting their operations in response to the tariffs, which Trump has claimed will enhance U.S. manufacturing and job creation.
Stellantis, the parent company of Chrysler, announced the temporary suspension of production at one of its Mexican and one Canadian plants, which will impact five related U.S. facilities and result in 900 U.S. workers facing temporary layoffs.
Honda is shifting its production of the next-generation Civic hybrid to Indiana from Mexico to avoid potential tariffs, as reported by Reuters.
Prior to the tariff regulations, Nissan was already working to reduce its global capacity by 20% as part of a recovery strategy.
New CEO Ivan Espinosa is under pressure to steer the company towards recovery, particularly in the U.S. market where the aging product lineup and lack of hybrid options have hurt performance. In the last financial year, Nissan had to adjust its profit forecast downward three times.