Nissan Makes Major Production Decision: Rogue SUV Production Decreasing
Japanese automotive giant NissanIn response to new tariffs imposed by the US on imported vehicles, the best-selling model in America Rogue SUV's production in Japan May-July This decision stands out as an important step that will directly affect Nissan's global strategies and production plans.
Impact of Tariffs and Production Restrictions
US President Donald Trump's cars produced abroad 25 percent customs duty The decision has shaken the global automotive supply chain. Nissan is more affected than its rivals because the U.S. is Nissan's largest market and more than a quarter of the vehicles it sold last year were made in Japan or Mexico.
According to sources, Nissan KyushuRogue production in three months at the main production facility in 13 thousand units This number is planned to be reduced. This number is based on the number of units sold in the US in the first quarter of the year. 62 bin That's about one-fifth of the Rogue's production capacity, which could negatively impact Nissan's production efficiency and market share.
Production Status and Working Hours
The factory is planned to stop production on some days between May and July and have workers work fewer hours. However, it is stated that the two-shift system will continue. This situation is considered an important step taken to increase the efficiency of the workforce. Nissan officials emphasized that production plans and supply chains are being reviewed and the most appropriate solutions for efficiency and sustainability are being sought.
In a statement, “Our approach will be careful and deliberate in assessing both short-term and long-term impacts.” This shows how carefully Nissan has thought about its future production strategies.
Production Continues in the USA
Last year in the United States, approximately 246 thousand units For Nissan, which sells the Rogue, the model accounts for more than a quarter of total sales nationwide. The company also sells the same model Smyrna, Tennessee Earlier this month, Nissan abandoned plans to reduce production at its Smyrna plant to a single shift and decided to continue Rogue production with two shifts.
This decision is considered an important step towards strengthening Nissan's position in the US market. However, due to the impact of global tariffs, Nissan's ability to compete with other automakers has become questionable.
Status of Other Manufacturers
The tariffs also affect other automakers. Chrysler's umbrella company Stellantis, has halted production at some plants in Mexico and Canada, affecting five U.S. factories 900 workers announced that it has temporarily laid off employees. This highlights the extent of the volatility in the automotive industry.
Honda to avoid potential tariffs, next generation Civic hybrid production of the model in the USA instead of Mexico Indiana Such strategic changes could help automakers maintain their competitive advantage in the U.S. market.
Nissan's Future Strategies
Even before the tariffs, Nissan was increasing its global capacity percent 20 was in the process of restructuring aimed at reducing the company's new CEO Ivan Espinosa, is under pressure, particularly in the US market, due to an aging lineup and a lack of hybrid models. Nissan last fiscal year profit expectation It was revised downward three times.
The primary goals for Nissan include developing new models that meet market demands and increasing the competitiveness of its existing models. In this context, Nissan's future production strategies and product range will depend on its ability to respond quickly to changes in the automotive industry.
In conclusion, Nissan's decision to reduce Rogue SUV production is a significant development that will affect not only the company's internal dynamics but also the competitive conditions in the global automotive market. The decisions the company will make in this process are critical in terms of both increasing production efficiency and maintaining market share.
