One of the most popular car brands in the world has announced it will be cutting production of its top-selling US model as a result of Donald Trump's auto tariffs.
Nissan will reduce production of its Rogue SUV in Japan by 13,000 vehicles between May and July in response to new US import tariffs.
The planned cut represents more than a fifth of the 62,000 Rogues sold in the United States during the first quarter of this year.
The Japanese automaker is the latest global car manufacturer to adjust its production plans following the introduction of a 25 per cent levy on imported vehicles by US President Donald Trump.
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The Nissan Rogue will have its production schedule altered in response to US tariffs
NISSAN
The United States is Nissan's top market, accounting for more than a quarter of vehicles sold last year, with many manufactured in Japan or Mexico.
This makes the company particularly vulnerable to Trump's tariff decision, which has disrupted automotive supply chains globally, Reuters reported.
On Monday, Trump indicated he was considering modifying the auto levy because manufacturers "need a little bit of time".
Nissan stated it was reviewing its production and supply chain operations to identify "optimal solutions for efficiency and sustainability".
Workers at Nissan's Kyushu plant, the company's largest, will work fewer hours from May through July, with production halted on some days. The plant will continue to operate on two shifts daily, according to a person familiar with the matter.
Nissan plans to reassess the production situation at a later date, depending on the outlook for tariffs.
"Our approach will be thoughtful and deliberate as we navigate both immediate and long-term effects," the company said in a statement.
The Rogue was Nissan's best-selling model in the US last year, with almost 246,000 vehicles sold, representing more than a quarter of the carmaker's total US vehicle sales.
Nissan also manufactures Rogue models at its plant in Smyrna, Tennessee. Earlier this month, the company reversed a separate plan to cut output at the Smyrna facility.
The Japanese car brand had scheduled to reduce Rogue production from two shifts to one in April, but has now decided to maintain both shifts.
Other automakers are also scrambling to adapt to the new tariffs. Stellantis has paused production at one plant in Mexico and another in Canada, which has impacted five connected US facilities and resulted in temporary layoffs for 900 American workers.
Honda has altered its manufacturing strategy as well, planning to produce its next-generation Civic hybrid in Indiana instead of Mexico, which reports suggest is specifically designed to avoid potential tariffs.
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Nissan has been under pressure to turn its financial situation around
NISSAN
Even before the tariffs, Nissan had been planning to slash global capacity by 20 per cent as part of a turnaround strategy, with new CEO Ivan Espinosa facing mounting pressure to revitalise the automaker, particularly in the US market.
Nissan's American performance has suffered due to an ageing vehicle lineup and a lack of hybrid models.
The company's financial situation has been precarious, with Nissan cutting its profit outlook three times during the financial year that just ended.
