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Nissan Plans to Boost Production Amid Tariff Challenges
Nissan Motor is intensifying its focus on maximizing output at its largest U.S. manufacturing facility in response to ongoing tariff pressures. Christian Meunier, the newly appointed chairman of Nissan Americas, expressed optimism that these tariffs, which impose a 25% levy on imported vehicles, could expedite necessary changes in the company’s domestic production strategy.
During a recent virtual interview, Meunier emphasized, “We have big facilities, big capacities and today we don’t have max capacity. We still have more room to improve our capacity.” He indicated that there are plans to enhance local sales and modify the import strategy concerning vehicles produced in Mexico and Japan.
The Smyrna, Tennessee facility spans an impressive 6 million square feet and is designed for an annual production of 640,000 vehicles across three shifts. Last year, however, it only produced about 314,500 vehicles with a workforce of roughly 5,700 employees.
“We’re looking at maxing out capacity and making Smyrna the powerhouse that it used to be,” Meunier stated, highlighting his aspiration to rectify current production shortfalls. While he refrained from providing a specific timeline for achieving maximum output, he acknowledged that implementing such changes requires a measured approach.
“We can increase production, as I described on the existing models that we have in the U.S., and commit to a plan to bring a product in the next two years … But it cannot happen overnight,” Meunier remarked.
His comments follow President Trump’s recent remarks about supporting automakers grappling with the implications of the tariffs. As Nissan explores potential expansion into hybrid production and new models like an Infiniti variant, Meunier noted the importance of adapting production processes for powertrain components and enhancing domestic content.
“The good thing is, we have flexibility. We have an ability for us to accelerate, to do things faster than we would have normally,” he said, underscoring a pre-existing commitment to localization before the tariffs were introduced.
The current tariffs on imported vehicles have been in effect since early April, despite the administration’s easing of some international trade restrictions. A second batch of 25% tariffs on auto parts is set to begin in May, a move Meunier believes could negatively impact Nissan’s operational plans. He remains hopeful for a compromise that could mitigate the financial strain associated with such high tariffs.
In addition to its operations in Tennessee, Nissan maintains two assembly plants in Mexico, producing popular models like the Nissan Kicks and Nissan Versa. Reports suggest that in 2024, Nissan produced approximately 670,000 units in Mexico, with a significant portion exported.
In the U.S., Nissan operates facilities capable of producing over 1 million vehicles annually, in addition to 1.4 million engines and substantial components for manufacturing. In the past year, Nissan’s U.S. production reached nearly 525,600 vehicles.
The company also operates other major facilities, including a notable powertrain plant in Tennessee and a vehicle assembly plant in Canton, Mississippi, the latter focused on models such as the Nissan Altima and Nissan Frontier. Meunier pointed out that vehicles like the Rogue and Pathfinder, alongside the Frontier—which has seen a decline in market share—hold significant growth potential for the brand in the United States.
In response to the tariffs, Nissan adjusted pricing for the Rogue and Pathfinder, lowering costs by $640 to nearly $2,000 based on vehicle specifications. Additionally, the company has halted new orders for certain Infiniti SUVs manufactured in Mexico.
“Nissan has struggled a little bit lately, but we have a good plan,” Meunier stated confidently. “We have good product in the pipeline. We’re launching highly competitive products now, and we’re optimistic about turning things around despite the tariff challenges.”
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