Nissan will lower Japanese manufacturing of its top-selling US mannequin, the Rogue SUV, over Could-July, mentioned an individual accustomed to the matter, turning into the most recent international automaker to change manufacturing plans in response to new US import tariffs.
US President Donald Trump’s resolution to slap a 25% levy on vehicles constructed abroad has upended the worldwide automotive provide chain.
Nissan, Japan’s third-largest carmaker, is extra uncovered than some rivals.
America is its prime market, accounting for greater than 1 / 4 of the automobiles it offered final yr, with lots of these made in Japan or Mexico.
Nissan plans to scale back output of the Rogue by 13,000 automobiles at its plant in Kyushu, southwest Japan, through the three-month interval, mentioned the particular person, declining to be recognized as a result of the data will not be public.
The deliberate lower is the same as greater than a fifth of the 62,000 Rogues offered in america within the first three months of this yr.
Employees on the Kyushu plant, Nissan’s largest, will work fewer hours from Could by July, with manufacturing halted on some days, the particular person mentioned.
The plant will proceed to function on two shifts a day, the particular person added.
The automaker will reassess the manufacturing state of affairs at a later date relying on the outlook for tariffs, the particular person mentioned.
On Monday, Trump mentioned he was contemplating modifying the auto levy as a result of automakers “need a little bit of time”.
Nissan mentioned in an announcement it was reviewing its manufacturing and provide chain operations to determine optimum options for effectivity and sustainability. It mentioned it was dedicated to adapting to market adjustments whereas prioritising workforce and manufacturing capabilities.
“Our approach will be thoughtful and deliberate as we navigate both immediate and long-term effects,” it mentioned.
BACKTRACK
The Rogue was Nissan’s best-selling mannequin within the US final yr, at virtually 246,000 automobiles, accounting for greater than 1 / 4 of the carmaker’s complete US automobile gross sales.
Nissan additionally makes Rogue fashions in Smyrna, Tennessee.
The most recent transfer comes after Nissan this month backtracked on a separate plan to lower output at Smyrna, saying it might keep two shifts for the Rogue, reasonably than chopping to 1 as had been scheduled for April.
Different automakers are additionally scrambling to navigate the tariffs, which Trump has mentioned will enhance US manufacturing and jobs.
Chrysler dad or mum Stellantis has mentioned it was pausing manufacturing at one plant in Mexico and one in Canada, impacting 5 linked US services and briefly shedding 900 US employees.
Honda plans to make its next-generation Civic hybrid within the US state of Indiana, as an alternative of Mexico, to keep away from potential tariffs, Reuters has reported.
Even earlier than the tariffs, Nissan had been trying to slash international capability by 20% as a part of a turnaround plan.
New CEO Ivan Espinosa is underneath stress to place the automaker on monitor for restoration, particularly within the US the place efficiency has been hit by an ageing line-up and an absence of hybrids.
Within the monetary yr that simply ended, Nissan lower its revenue outlook thrice.
