TSLA372.110-5.83%
GM82.6302.06%
F12.7100.11%
RIVN15.4700.18%
CYD33.0301.83%
HMC32.9300.74%
TM190.3403.62%
CVNA65.0600.88%
PAG209.6201.65%
LAD316.4206.82%
AN166.9804.09%
GPI252.1804.39%
ABG185.1505.21%
SAH64.9502.47%
TSLA372.110-5.83%
GM82.6302.06%
F12.7100.11%
RIVN15.4700.18%
CYD33.0301.83%
HMC32.9300.74%
TM190.3403.62%
CVNA65.0600.88%
PAG209.6201.65%
LAD316.4206.82%
AN166.9804.09%
GPI252.1804.39%
ABG185.1505.21%
SAH64.9502.47%
TSLA372.110-5.83%
GM82.6302.06%
F12.7100.11%
RIVN15.4700.18%
CYD33.0301.83%
HMC32.9300.74%
TM190.3403.62%
CVNA65.0600.88%
PAG209.6201.65%
LAD316.4206.82%
AN166.9804.09%
GPI252.1804.39%
ABG185.1505.21%
SAH64.9502.47%

Nissan plans to maximize production in response to tariffs

Additional 25% tariffs on imported auto parts are scheduled to begin May 3, prompting the automaker to reevaluate its global sourcing strategy.

Image Source | Nissan Smyrna Plant Media

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.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

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.

Read More
More from EVs & Technology
Bentley unveils first EV as luxury brand targets new buyers

Bentley unveils first EV as luxury brand targets new buyers

- September 24, 2026
On the Dash: Bentley unveiled the Torcal, its first fully electric vehicle, with a starting price of about $230,000. The luxury SUV retains Bentley design elements and uses an orchestral...
BMW opens U.S. reservations for the new i3 a week early

BMW opens U.S. reservations for the new i3 a week early

- September 24, 2026
On the Dash: BMW will open U.S. reservations for the new i3 on Sept. 29, a week early. The 2027 i3 50 xDrive delivers a combined 463 horsepower and includes...
Ford R&A team pushes speed as automaker races to accelerate innovation

Ford R&A team pushes speed as automaker races to accelerate innovation

- September 23, 2026
On the Dash: Ford’s Research and Advanced Engineering team is targeting faster development cycles as vehicle technology and consumer expectations continue to evolve. AI, simplified vehicle architectures and rapid testing...
Rivian says R3 will cost 'materially' less than R2, R4 pricing goes even lower

Rivian says R3 will cost ‘materially’ less than R2, R4 pricing goes even lower

- September 23, 2026
On the Dash: Rivian's next two vehicles will undercut the R2 on price, CEO says No pricing yet, but Rivian's CEO says the gap between models is growing CEO RJ...
CBT News
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.