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Nissan slashes Japanese production of top US model amid tariff pressures

Nissan will significantly reduce output of its best-selling US model, the Rogue SUV, at its Kyushu plant in Japan between May and July, according to Reuters.

The move comes as global automakers scramble to adjust manufacturing strategies in response to the US’s 25% import tariff on foreign-built vehicles.

The decision highlights the growing strain on Japan’s third-largest automaker, which relies heavily on the US market, accounting for over a quarter of its global sales last year. Unlike competitors with stronger US production bases, Nissan ships a substantial number of vehicles from Japan and Mexico, leaving it particularly vulnerable to the new levies.

The Kyushu facility, Nissan’s largest plant, will trim Rogue production by 13,000 units over the three-month period, equivalent to more than 20% of the model’s US sales in Q1 2024. Workers will see reduced hours, with some production days halted entirely, though the plant will maintain its two-shift structure for now.

Nissan said it is “reviewing production and supply chain operations to identify optimal solutions,” adding that it remains committed to adapting to market shifts while safeguarding jobs.

The automaker will reassess its strategy based on future tariff developments, particularly after US President Donald Trump hinted at possible modifications, stating automakers “need a little bit of time.”

The Rogue, Nissan’s top US seller with nearly 246,000 units moved last year, is also produced in Smyrna, Tennessee. The company recently reversed a planned shift reduction at the US plant, opting to maintain two production lines instead of scaling back to one.

Other automakers are also reworking supply chains to mitigate tariff risks. Stellantis has paused operations at facilities in Mexico and Canada, affecting 900 US workers, while Honda will shift Civic hybrid production from Mexico to Indiana.

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