Nissan is reportedly contemplating a major shift in its production strategy for the fourth-generation Rogue, a popular crossover model in the United States. According to Automotive News, the Japanese automaker is considering relocating the production of the Rogue from its Smyrna, Tennessee plant to Kyushu, Japan. This potential move is contingent on Nissan’s ability to reduce purchasing costs, as the company anticipates a “significant reduction” in parts pricing when the next-generation Rogue begins production in 2026.
The decision is rooted in Nissan’s request to suppliers to lower the cost of parts by an average of 20%, with some suppliers being asked to implement even steeper cuts of up to 30%. The motivation behind this move becomes clearer when considering that Nissan can build the Rogue in Japan for 20% less than it currently does in the USA.
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Despite Nissan USA having already reduced internal manufacturing costs by 18%, it appears that further cost reductions are necessary. The company has conveyed to suppliers that if the desired cost proximity to Japan cannot be achieved, production of the Rogue might be shifted to Japan.
This potential shift has significant implications for Nissan’s operations in the United States, particularly at the Smyrna plant. The Smyrna facility, which employs around 6,700 workers, is crucial for Nissan’s U.S. manufacturing, producing various models including the all-electric Leaf, Pathfinder, Murano, and Infiniti QX60. Notably, the Rogue constitutes a substantial 40% of the factory’s output, making it a linchpin for the plant’s viability.
The impact could be exacerbated by the cessation of Leaf production at the Smyrna plant in 2025, with its replacement slated to be manufactured in Japan. If the Rogue production is indeed moved to Japan, it could pose challenges for the Smyrna plant’s sustainability.
To address space constraints at the Japan facility, Nissan is reportedly considering transferring some of the existing Rogue production to China, as suggested by sources to Automotive News. This move, if executed, would represent a significant reconfiguration of Nissan’s global production footprint.
