Japanese car manufacturer - Nissan is reorganizing its worldwide production strategy due to tariffs imposed by President Trump on vehicles assembled abroad. What genuinely impacts the company negatively is that it produces a significant number of cars in Japan and Mexico, including models that are favored in the US.
In reality, the best-selling Nissan for several years, the Rogue, sources more than 20 percent of its inventory for this market from Japan. To adapt, the car manufacturer will reduce the Rogue production at its facility in Kyushu, Japan by 13,000 units from May to July, as reported by Reuters.
Nonetheless, Nissan adopts a wait-and-see approach regarding any permanent changes to the plant's production. Given that Trump has mentioned he could grant automakers a break from tariffs to allow them time to relocate vehicle assembly, this could prove to be a clever approach.
Nissan’s potential advantage could be that most Rogue crossovers are produced at its large plant in Smyrna, Tennessee. Additionally, the Murano, Pathfinder, and Infiniti QX60 are also being produced at that facility.
Due to tariffs being implemented, Nissan has abandoned its earlier plan to reduce production in Smyrna. This probably indicates that Kyushu will experience a reduction in production volume instead.
At Nissan’s Canton Vehicle Assembly Plant, the two models being produced right now are the Altima and Frontier. The car manufacturer states that upcoming EV models will be produced at the facility soon.