Nissan may shift production of the next-generation Rogue from the U.S. to Japan if it is unable to significantly lower its purchasing costs.
The company is currently building the Rogue at its plants in Smyrna, Tennessee and Kyushu, Japan. The Smyrna facility also makes the Nissan Leaf, Murano, and Pathfinder, as well as the Infiniti QX60, but since the Rogue is Nissan’s best, selling vehicles in the U. S. is the only way to get the Nissan Leaf, Murano, and Pathfinder. In the U. S. , it’s arguably the most important for the brand. It has an annual capacity of 640,000 vehicles, employs 6,700 people, and the Rogue accounts for approximately 40% of total production.
In a recent meeting with suppliers at Nissan North America’s headquarters, the automaker called for a relief in the value of spare parts by an average of 20%. Some suppliers have been asked to reduce their values by as much as 30%. If it can’t meet Nissan’s demands, the company could be forced to move all production of the Rogue to Japan, where it says it currently makes it at a 20% slower rate than in the United States.
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While speaking with Auto News after the meeting, a supplier said “[Nissan] told us that if we can’t get closer to Japan’s cost, they will move production [to Kyushu].”
The company is understood to have asked its suppliers to submit quotes for the new Rogue by the end of the week before Nissan North America submits its production cost plan to Nissan Motor Co. executives. in Japan, which in February will release the long-running Rogue Production in the United States
“I’ve never heard of a [OEM] asking for a price cut of this magnitude and threatening to move all vehicle production domestically,” said Daniel Rustmann, co-president of Butzel Long’s global automotive practice.
Anonymous sources recommend that Nissan would possibly lose capacity in Japan for the Rogue by moving some other production to China. The loss of the Rogue would be a major blow to the Smyrna site, as production of the current-gen Leaf is also expected. to be completed at the plant by mid-2025.
“Bringing the Rogue to Japan will add a lot of red ink to Nissan’s U. S. accounts,” said Sam Fiorani, vice president of AutoForecast Solutions. “Closing a plant may be Nissan’s long term. “