NewsNissan shifts production to U.S. amid tightening trade policies

Nissan shifts production to U.S. amid tightening trade policies

The Japanese automotive giant Nissan plans to reorganize its production in response to the tightening trade policies of the United States. According to reports from Nikkei, the company is considering relocating part of the production of vehicles intended for the American market from factories in Japan to plants in the USA.

Nissan may move part of its production to the USA
Nissan may move part of its production to the USA
Images source: © pa images via getty images | Owen Humphreys - PA Images

As indicated by the Japanese agency Nikkei, Nissan may reduce production at its Fukuoka plant in western Japan as soon as this summer. This primarily concerns the Rogue SUV model, which is a key vehicle for the company's lineup in the American market. Currently, this car is manufactured both in Fukuoka and the United States, and the planned changes aim to increase the share of American production.

Nissan's decision is part of a broader trend of international automotive companies adjusting production strategies in response to U.S. trade policy. Last year, Nissan sold approximately 920,000 vehicles in the American market, of which about 16 percent were cars exported from Japan. The planned production shift could significantly impact local suppliers' operations in Japan.

Strategic decisions by Nissan in the face of U.S. tariffs

Previous tariff announcements have already impacted Nissan's operations. On Thursday, the company announced that it would not accept new orders from the USA for two Infiniti SUV models produced in Mexico. This decision highlights the seriousness of the situation caused by the U.S. administration's tariff policy and entails a drastic reduction of operations at the joint venture plant.

At the same time, the Japanese manufacturer plans to maintain production of the Rogue model at the plant in Smyrna, Tennessee, with two shifts. This marks a change from the January announcements when Nissan declared it would end one of two production shifts in April. The decision to maintain full production capacity at the American plant indicates a strategic adaptation of the company to new trade realities.

Some already suspend deliveries

Nissan's actions reflect the broader challenges faced by the global automotive industry in the face of changing trade policies. Other companies, such as the British Jaguar Land Rover, have also announced halting deliveries to the USA due to new tariffs. Hyundai has decided to maintain stable vehicle prices until June amid tariff-related uncertainties.

The European Union is also preparing a response to U.S. tariffs, aiming to develop a unified position regarding President Trump's trade policy. This situation underscores how global supply chains in the automotive industry are sensitive to changes in trade policy of major world economies.

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