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Nissan Aims to Maximize U.S. Production Amid Auto Tariffs

BusinessNissan Aims to Maximize U.S. Production Amid Auto Tariffs

Nissan Motor’s new leader for the Americas, Christian Meunier, has outlined a clear ambition to significantly increase vehicle production in the United States, particularly at the company’s largest American facility in Smyrna, Tennessee. This move comes in response to the 25% tariffs on auto imports imposed by the U.S. government. Meunier emphasized that the tariffs are accelerating Nissan’s pre-existing strategy to localize production, helping to revitalize its U.S. operations, which have faced challenges in recent years.

The Smyrna facility, capable of producing up to 640,000 vehicles annually on three shifts, currently operates with about 5,700 employees and produced over 314,500 vehicles last year using two shifts. Meunier stated that his ultimate objective is to maximize output at the plant and restore it to its former status as a production powerhouse. However, he acknowledged that achieving full capacity would take time, as production adjustments and new model launches cannot be implemented overnight.

To support this growth, Nissan is considering adding hybrid models and potentially introducing an Infiniti vehicle to the Smyrna line-up. The automaker is also analyzing ways to boost domestic production of engines and other powertrain components, increasing local content to reduce reliance on imports. Meunier noted that Nissan’s production system has enough flexibility to adapt quickly to these changes, further enabling the company to respond to the shifting trade environment.

Nissan’s broader manufacturing presence includes two assembly plants in Mexico, which produced nearly 670,000 vehicles in 2024, with more than 456,000 exported. In contrast, Nissan’s U.S. plants produced approximately 525,600 vehicles last year, despite having the capacity for more than 1 million. In addition to the Smyrna facility, Nissan operates a powertrain plant in Tennessee and another vehicle assembly plant in Canton, Mississippi. The Canton facility produces the Nissan Altima and Frontier and employs about 5,000 workers.

To remain competitive, Nissan has lowered prices for models like the Rogue and Pathfinder and paused U.S. orders for certain Mexican-built Infiniti SUVs. Meunier remains optimistic, citing strong new product pipelines and reaffirming Nissan’s commitment to turnaround efforts despite trade challenges.

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