Nissan Motor is ramping up efforts to maximize vehicle output at its Smyrna, Tennessee, plant in response to President Donald Trump’s 25% tariffs on imported vehicles. The company is shifting its strategy to localize more production as part of a broader plan to revitalize its U.S. operations.
The Smyrna facility, Nissan’s largest in the U.S., spans 6 million square feet and has the capacity to produce up to 640,000 vehicles annually across three shifts. In 2024, the plant produced just over 314,500 vehicles on two shifts and employs approximately 5,700 workers. While Nissan plans to increase output to reach full capacity, the Rogue—the brand’s top-selling U.S. model—is leading the push.
However, the tariffs, which took effect April 3, have accelerated Nissan’s timeline to reduce reliance on imports from Mexico and Japan. Additional 25% tariffs on imported auto parts are scheduled to begin May 3, prompting the automaker to reevaluate its global sourcing strategy.
To offset the impact, Nissan is considering adding hybrid models and an Infiniti vehicle to its U.S. production lineup. It is also analyzing increases in powertrain component production and a boost in overall domestic content. These changes are part of a longer-term shift toward U.S.-based manufacturing, which Nissan had already begun before the tariffs were announced.
The automaker operates two assembly plants in Mexico that produced nearly 670,000 vehicles in 2024, with over 456,000 exported. Nissan is reviewing how much of that production could be relocated to U.S. facilities, although such moves would take time.
In total, Nissan’s U.S. manufacturing footprint includes capacity for more than 1 million vehicles annually, in addition to 1.4 million engines, 1.4 million forgings, and over 450,000 castings. Alongside Smyrna, the Canton, Mississippi, plant builds the Altima sedan and Frontier pickup truck. Canton employs around 5,000 workers and currently operates one shift for the Altima and two shifts for the Frontier.
To remain competitive amid tariff-driven price pressures, Nissan has reduced prices on the Rogue and Pathfinder by up to $2,000, depending on the model and trim. The company has also paused U.S. orders for two Mexican-built Infiniti SUVs.
Ultimately, Nissan is banking on growth from models such as the Rogue, Pathfinder, and Frontier—vehicles with significant market potential. While the Frontier has seen a decline in share, it remains central to Nissan’s domestic strategy. The company believes that a localized, high-capacity production approach will help drive a turnaround in the U.S. market.
