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In a strategic response to rising trade tensions, Nissan is scaling back production of its top-selling U.S. model, the Rogue SUV, at its Kyushu plant in Japan. The decision comes as the automaker navigates the fallout from the United States' recent imposition of a 25% tariff on imported vehicles. The reduction, which will cut output by 13,000 units over the May to July period, marks a significant shift in Nissan's manufacturing approach.
The impact of the tariff is not abstract. In the first quarter of 2025 alone, Nissan sold 62,000 Rogue SUVs in the United States. The planned reduction—just over 20% of that figure—reflects a cautious recalibration of supply in the face of policy volatility. A source familiar with the matter said production will be halted on select days, and workers at the Kyushu facility will see reduced hours, although two shifts per day will continue.
Nissan's statement emphasized adaptability, noting the company is "reviewing production and supply chain operations to identify optimal solutions for efficiency and sustainability." The automaker added, "Our approach will be thoughtful and deliberate as we navigate both immediate and long-term effects."
The U.S. remains Nissan's largest market, accounting for over a quarter of its global sales. With many of those vehicles manufactured in Japan and Mexico, the automaker is particularly vulnerable to tariff shifts. Nissan's Kyushu plant—its largest in Japan—has played a central role in fulfilling American demand for the Rogue.
Despite the reduction in Japan, Nissan has opted to maintain full operations at its Smyrna, Tennessee plant, reversing an earlier decision to cut a shift there. The move appears aimed at mitigating tariff exposure by shifting production stateside.
Nissan is not alone in adjusting strategy. Stellantis, parent company of Chrysler, temporarily paused production at one Mexican and one Canadian facility, affecting five U.S. sites and prompting 900 temporary layoffs. Honda, for its part, has announced plans to manufacture its next-generation Civic hybrid in Indiana, rather than Mexico.
Internally, Nissan continues to wrestle with broader challenges. New CEO Ivan Espinosa has inherited a restructuring effort that includes slashing global capacity by 20%. In the past fiscal year, the company revised its profit outlook downward three times, citing weak U.S. performance and a lack of hybrid offerings.
