Nissan aims to ‘max out’ U.S. production plant amid Trump’s tariffs

Nissan Motor’s new Americas chief mentioned the automaker is aiming to “max out” production at its largest American production plant amid President Donald Trump’s 25% auto tariffs.

Christian Meunier, who began as chairman of Nissan Americas in January, mentioned the tariffs are accelerating already wanted plans for the automaker to improve home production to help in a turnaround of its embattled U.S. operations.

“We’ve got large amenities, large capacities and immediately we do not have max capability. We nonetheless have extra room to enhance our capability,” Meunier informed CNBC throughout a digital interview Wednesday. “We’re trying into promoting extra of the U.S. merchandise, and adjusting, alongside the way in which, automobiles which might be coming from Mexico and from Japan.”

Meunier mentioned his “final objective” is to “max out” capability on the automaker’s 6-million-square-foot facility in Smyrna, Tennessee. The ability is able to producing 640,000 automobiles a yr on three shifts, he mentioned. It produced greater than 314,500 automobiles final yr on two shifts with about 5,700 folks.

“We’re taking a look at maxing out capability and making Smyrna the powerhouse that it used to be,” he mentioned. “That is my final objective … to get the plant full and make some huge cash once more.”

Meunier declined to speculate on a timeframe for hitting that most production on the plant, which at the moment makes 4 merchandise, together with the automaker’s Nissan Rogue – its top-selling car domestically. He mentioned it takes time to change plans and transfer production.

“We are able to improve production, as I described on the present fashions that we’ve got within the U.S., and commit to a plan to carry a product the subsequent two years … or a pair merchandise to the U.S. market. But it surely can not occur in a single day,” he mentioned.

Meunier’s feedback come two days after Trump mentioned he is trying to probably “assist” some automakers, saying the businesses want time to alter production plans.

Nissan is taking a look at including hybrid production to Smyrna in addition to new merchandise akin to an Infiniti mannequin, Meunier mentioned. He additionally mentioned the corporate is analyzing production will increase for powertrain elements akin to engines and rising home content material.

“The great factor is, we’ve got flexibility. We’ve got a capability for us to to speed up, to do issues quicker than we might have usually,” Meunier mentioned. “I used to be already engaged on it earlier than the tariff, as a result of I, I am satisfied that localization is the way in which.”

Tariffs on imported automobiles into the U.S. have been in impact since April 3, regardless of Trump’s pullback final week on different country-based levies. Extra 25% tariffs on auto elements are scheduled to take impact by Could 3.

Meunier mentioned these potential elements tariffs would harm the corporate and its plans.

“Hopefully there will probably be options that do not harm utterly, to a full extent at 25% as a result of that is rather a lot,” he mentioned. “Hopefully there will probably be a compromise in between.”

Nissan has two meeting crops in Mexico that produce a wide range of automobiles, together with imports such because the Nissan Kicks and Nissan Versa. In 2024, Nissan reportedly produced almost 670,000 items in Mexico, with over 456,000 being exported, in accordance to UnoTV in Mexico.

Within the U.S., Nissan says it has meeting amenities able to producing greater than 1 million automobiles, 1.4 million engines, 1.4 million forgings and 456,000 castings yearly. Of that full capability, the automaker produced almost 525,600 automobiles within the U.S. in 2024.

Apart from Smyrna, the corporate has a big powertrain plant in Tennessee and one other massive car meeting plant in Canton, Mississippi.

The Canton plant at the moment produces the Nissan Altima sedan and Nissan Frontier midsize pickup truck. It employs roughly 5,000 employees on a single shift for the Altima and two shifts for the Frontier.

The Rogue and the Pathfinder, in addition to the Frontier, which has skilled vital market share declines in recent times to roughly 7% to 8% of its phase, are among the many automobiles with the best development potential for Nissan within the U.S., Meunier mentioned.

Nissan lowered pricing of the Rogue and Pathfinder by between $640 and almost $2,000, relying on the car and mannequin, in response to the tariffs. It additionally stopped taking new orders from the U.S. for 2 Mexican-built SUVs for its Infiniti luxurious model.

“Nissan has struggled a bit of bit currently, however we’ve got a great plan,” he mentioned. “We’ve got good product within the pipeline. We’re launching tremendous good product now which might be profitable, and we’re gonna flip it round regardless of the tariff.”