Due to the impact of tariffs, Nissan cuts Japanese production line for its best-selling model in the US

The Zhitong Finance App learned that Nissan will cut production of its best-selling American model, the Rogue SUV, in Japan from May to July, according to people familiar with the matter. This move is in response to the new US import tariff policy. US President Trump decided to impose a 25% tariff on cars manufactured overseas. This policy has seriously impacted the global automobile supply chain. As Japan's third-largest automobile manufacturer, Nissan has been particularly affected. The US is Nissan's biggest market, and over a quarter of its car sales last year came from the US, and many of these cars were made in Japan or Mexico.

Specifically, Nissan plans to reduce Rogue production by 13,000 vehicles at its plant in Kyushu in southwestern Japan within three months. This reduction in production is equivalent to more than one-fifth of Rogue's sales volume in the US (62,000 units) in the first quarter of this year. Affected by this, workers at Nissan's largest Kyushu plant will reduce their working hours from May to July, and production will also be suspended on some dates. However, the plant will continue to operate a two-shift system per day. Nissan said it will re-evaluate the production situation later based on the tariff outlook.

Earlier, Trump said he was considering revising the automobile tax because the car manufacturer “will take some time.” Nissan said in a statement that it is reviewing its production and supply chain operations to find the best solutions to achieve efficiency and sustainability. The company emphasized that it will be committed to adapting to market changes while prioritizing labor and production capacity, and will take a thoughtful and careful approach to balance short- and long-term impacts.

The Rogue was Nissan's best-selling model in the US last year. The sales volume was close to 246,000 units, accounting for more than a quarter of Nissan's total sales in the US. Nissan also manufactures Rogue models in Smyrna, Tennessee. According to previous reports, Nissan abandoned plans to cut production at the Smyrna plant this month, saying it will maintain production of the two-shift Rogue.

Other car manufacturers are also struggling to deal with tariffs. Trump said the tariffs would boost US manufacturing and employment. Chrysler's parent company Stellantis NV (STLA.US) said it will suspend production at one of its plants in Mexico and Canada, which will affect its five related factories in the US and temporarily lay off 900 American workers. According to reports, Honda Motor Company (HMC.US) plans to produce the next generation Civic hybrid in Indiana instead of Mexico in the US to avoid potential tariffs.

Nissan had previously planned to cut global production capacity by 20% as part of a plan to turn losses into profits. The new CEO, Ivan Espinosa (Ivan Espinosa), is under pressure to lead Nissan on the path of recovery, particularly in the US market. Nissan's performance has been impacted by aging models and the scarcity of hybrid models. In the fiscal year that just ended, Nissan lowered its profit forecast three times.