Nissan said that between May and July, it will cut Japanese production of its top-selling US model, the Rogue SUV, and that anyone familiar with the issue will become the latest global automaker to change its manufacturing plans in response to new US import duties.
President Donald Trump’s decision to tax cars built overseas by 25% has overturned the global automotive supply chain.
Nissan, Japan’s third largest automaker, is more exposed than some of its rivals.
The US is the top market, accounting for more than a quarter of vehicles sold last year, many of which are made in Japan or Mexico.
Nissan said it plans to cut fraudulent production at its factory in Kyushu, southwestern Japan over three months with 13,000 vehicles, and refused to be identified because information has not been made public.
The planned cuts amount to more than five-fifths of the 62,000 rogues sold in the US during the first three months of the year.
Workers at Nissan’s largest Kyushu plant will be running low for fewer hours between May and July, and production will be suspended for several days, people said.
The factory will continue to operate in two shifts a day, the person added.
The automaker will reassess production at a later date, according to tariff outlook, the person said.
On Monday, Trump said he was considering changing the auto levy because the automaker “needs a little time.”
In a statement, Nissan said it is considering operating its production and supply chain to identify the best solutions for efficiency and sustainability. He said he is working to adapt to market changes while prioritizing the workforce and production capacity.
“Our approach becomes thoughtful and intentional as we navigate both immediate and long-term impacts.”
Backtrack
Rogue was the US’s best-selling model last year, with nearly 246,000 vehicles, accounting for more than a quarter of the car manufacturer’s total US vehicle sales.
Nissan is also producing fraudulent models in Smyrna, Tennessee.
The latest move comes after Nissan returned to another plan to cut power at Smyrna this month, saying it would maintain two shifts of fraud rather than cutting to what was scheduled for April.
Other automakers are also rushing to navigate tariffs that Trump said would boost US manufacturing and work.
Chrysler’s parent Stellantis said it has suspended production at one plant in Mexico and one plant in Canada, affecting five connected US facilities and temporarily laying 900 US workers.
Honda plans to avoid potential tariffs on the next-generation citizen hybrid in Indiana, the US, not Mexico, Reuters reports.
Even before the tariffs, Nissan was trying to cut global capabilities by 20% as part of its turnaround plan.
New CEO Ivan Espinoza is under pressure to get automakers on track to recover, especially in the US, where a lack of aging lineup and hybrids hits.
In the fiscal year just finished, Nissan cut its profit outlook three times.
