Nissan’s Potential Move of Rogue Production Spells Trouble for Tennessee Factory

Nissan’s potential decision to relocate the production of the fourth-generation Rogue to Kyushu, Japan, could have significant implications for its Tennessee-based operations. The Japanese automaker has communicated to suppliers its intention to achieve a “significant reduction” in parts pricing when the next-generation crossover enters production in 2026. This move comes as Nissan seeks to cut costs, with reports indicating that the company has asked suppliers to reduce the cost of parts by an average of 20%, with some suppliers being asked for reductions of up to 30%.

The Smyrna, Tennessee-built Rogue holds a crucial position as Nissan’s best-selling model in the American market. With around 6,700 workers, the Smyrna facility heavily relies on the production of the Rogue, as approximately 40% of the factory’s output comprises this model. The potential relocation of Rogue production to Japan could leave the Tennessee plant in a vulnerable position, especially considering the impending cessation of production for the Nissan Leaf, another key model produced at the facility.

Moreover, the move could be influenced by the company’s efforts to reduce costs amidst potential increases in operational expenses, possibly linked to unionization efforts. Industry analysts have expressed surprise at the magnitude of the price reduction being sought and the potential threat of moving an entire vehicle’s production to another country. This decision could have far-reaching consequences, as it may not only impact the Tennessee factory but also affect Nissan’s broader operations in the United States.

As the automaker evaluates revised quotations for the new Rogue, a decision is expected to be made in February. However, industry experts believe that if Nissan proceeds with moving Rogue production to Japan, it could spell financial trouble for Nissan USA, potentially leading to the closure of a plant. The outcome of this decision is crucial not only for Nissan but also for the future landscape of automotive manufacturing in the United States.

Stay tuned for updates as Nissan executives prepare to make their final decision on the fate of the Rogue’s production.

https://carbuzz.com/news/nissan-ready-to-pull-the-plug-on-american-rogue-production