Nissan Motor is taking decisive action by planning to reduce its production in the United States by 17% by the end of March 2025. This strategic adjustment will directly impact the production of its popular models, the Frontier and Rogue. According to recent reports, this move is aimed at addressing the decline in global sales, striving to maintain competitiveness in adversity.
Specifically, this production cut will affect the Canton assembly plant in Mississippi, which is responsible for producing the Frontier pickup and other models, and will also impact the Smyrna factory in Tennessee, which primarily manufactures the Rogue. Together, these two models account for nearly 30% of Nissan's total sales in the U.S.
The production cuts reportedly come on top of a previous decision to slow the pace of production at both plants until the end of the year, with Nissan reducing the number of working days per week from five to four. Nissan said it is reassessing production expectations to better align with market trends and demand for its models.
However, this news of production cuts comes at a particularly challenging time for the Japanese automaker. Recent disclosures indicate that Nissan will cut 9,000 jobs globally and reduce its overall production by 20% due to sluggish sales and declining profit forecasts. Last week, the brand mentioned that about 1,000 of its employees in the U.S. are expected to accept early retirement offers by the end of the year, which is approximately 6% of its domestic workforce.
Just days ago, anxieties about Nissan's future escalated after two unnamed senior officials suggested that the brand may have only "12 to 14 months left to survive" unless it can secure a new major investor. Clearly, Nissan's recent decision to sell shares of Mitsubishi will not be sufficient to ensure its financial future.
In August, Nissan announced that it, along with Honda and Mitsubishi, would collaborate on producing electric vehicles and related software. While this partnership is framed as a collaboration, former Nissan and Renault CEO Carlos Ghosn hinted that it could present an enticing acquisition opportunity for Honda over Mitsubishi and Nissan.
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