Updated April 15th 2025, 20:34 IST
Nissan on Tuesday announced it will slash production of its best-selling U.S. model, the Rogue SUV, at its Kyushu plant in Japan. This move highlights the deepening ripple effects of President Donald Trump ’s controversial 25% tariff on cars built overseas. As tariffs wreak havoc on global automakers, Nissan plans a 13,000-vehicle reduction in Rogue production from May to July. This cut represents over 20% of the 62,000 units sold in the U.S. during the first quarter of 2025.
Reduced Hours, Halted Shifts
Production at Nissan's largest plant in Kyushu will be scaled back, with workers working fewer hours during the three-month period. Some shifts will be completely halted, reflecting the uncertainty surrounding tariff impacts.
The 25% import levy on foreign-made vehicles, imposed by Trump, has shaken up the global automotive supply chain. As a company highly dependent on the U.S. market, Nissan has been particularly vulnerable. The U.S. accounted for over a quarter of the company’s sales in 2024, with many of these cars manufactured in Japan or Mexico.
Adaptation Amid Tariff Uncertainty
Nissan remains cautious, emphasizing a flexible approach in reviewing its production strategy. "We are committed to adapting to market changes while prioritizing workforce and production capabilities," the automaker said in a statement, stressing that it will remain responsive to future developments.
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Adjust Production Plans
Nissan is not alone in facing the impacts of these tariffs. Rival automakers like Chrysler’s Stellantis and Honda are also making significant adjustments. Stellantis has temporarily shut down production at a Mexican plant, while Honda has shifted production of its next-gen Civic hybrid from Mexico to Indiana to avoid tariffs.
The move to cut Rogue production follows Nissan’s broader restructuring plan, which includes slashing global capacity by 20%. New CEO Ivan Espinosa is under mounting pressure to restore the automaker’s competitiveness, particularly in the U.S. market, where an aging lineup and lack of hybrid models have hindered performance.
Published April 15th 2025, 20:34 IST