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Saturday April 19 2025

Nissan reduces production of best-selling model in USA

15 April 2025 23:55 (UTC+04:00)
Nissan reduces production of best-selling model in USA

By Alimat Aliyeva

Nissan is being forced to revise its production strategy due to new import duties imposed by the U.S. presidential administration. Between May and July 2025, production of the company’s best-selling Rogue SUV at its Kyushu plant in Japan will be reduced by 13,000 units, Azernews reports.

U.S. President Donald Trump’s decision to impose a 25% tariff on foreign-manufactured vehicles has disrupted the global automotive supply chain. Nissan—Japan’s third-largest carmaker—is particularly vulnerable, as the United States is its largest market, accounting for more than a quarter of all vehicles it sold last year. Many of those cars are produced in Japan and Mexico, Reuters reports.

As a result, workers at Nissan’s Kyushu plant—its largest production facility—will face reduced hours from May through July, with some days of production halted entirely. The company says it will re-evaluate the situation depending on how tariff developments unfold.

On Monday, Trump signaled some flexibility, stating he was considering changes to the new car tax, noting that automakers "need a little time" to adapt.

Even prior to the tariffs, Nissan had planned to cut its global production capacity by 20% as part of a broader restructuring effort aimed at overcoming ongoing financial and operational challenges.

Nissan's Kyushu plant, located in Fukuoka Prefecture, is not just the company’s largest—it's also one of Japan’s most advanced automotive factories, known for its highly automated production lines and export-oriented strategy. A significant portion of the vehicles built there are destined for North America, meaning any disruption could have a ripple effect across dealership inventories in the U.S.

Analysts say the current situation highlights the fragile interdependence between Japanese automakers and the U.S. market, as well as the growing strategic risks associated with international trade tensions.

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