Japanese automaker Nissan is shuffling its global manufacturing scheme as tariffs levied by President Trump on foreign-assembled cars have come into play. What really hurts the company is the fact it makes quite a few cars in Japan and Mexico, including models that are popular here in the US.
Canada has answered US auto tariffs.
In fact, the top-selling Nissan for years now, the Rogue, gets over 20 percent of its supply for this market from Japan. To adjust, the automaker is going to cut production of the Rogue at is plan in Kyushu, Japan by 13,000 units for May through July, according to a report from Reuters.
However, Nissan has a wait and see strategy when it comes to permanently altering production for the plant. Considering Trump has said he might give automakers a reprieve from tariffs so they have time to shift where different vehicles are assembled, that might turn out to be a wise strategy.
Nissan’s saving grace might be that the vast majority of Rogue crossovers are assembled at its sizable factory in Smyrna, Tennessee. Also rolling off production lines at that facility are the Murano, Pathfinder, and the Infiniti QX60.
With tariffs in place, Nissan has scrapped a previous plan to cut production in Smyrna. That likely means Kyushu will see a rollback on production volume instead.
At Nissan’s Canton Vehicle Assembly Plant, two models are currently made: the Altima and Frontier. The automaker says next-generation EV models will be rolling out of the facility in the near future.
The United States is the number one market for Nissan. In other words, if it doesn’t find a way to play ball with the new tariffs, the automaker that’s already been teetering on the edge of a financial abyss could conceivably go under.
It’s a good thing Nissan spent two years and a number of resources to develop a new hue of blue for the Murano.
Image via Nissan