Tag Archives: Nissan

Nissan Looks to Boost U.S. Production in Response to Tariffs

Automobile Industry, , , ,

Nissan is planning to ramp up vehicle production at its largest U.S. plant as new auto tariffs take effect. The company’s Smyrna, Tennessee, facility has the capacity to build up to 640,000 vehicles a year on three shifts, but in 2024, it produced about 314,500 vehicles using just two.

Christian Meunier, chairman of Nissan Americas, said the company sees an opportunity to make better use of its existing U.S. manufacturing capacity. “We have big facilities, big capacities, and today we don’t have max capacity,” Meunier told CNBC. Nissan is considering shifting some production from Mexico and Japan to its U.S. plants as part of a broader adjustment strategy.

Nationwide, Nissan produced roughly 525,600 vehicles in the U.S. last year. Its American operations include about 15,000 employees and more than 400 supplier partners. Along with Smyrna, the company operates a plant in Canton, Mississippi, which builds the Altima and Frontier.

The Canton facility is also preparing for a major transition. A $500 million investment is underway to support electric vehicle production, with new EV models expected to enter production in the next few years.

Meunier warned that the new 25% tariffs could raise the cost of affordable vehicles, such as the Nissan Versa. “That’s going to hurt customers who buy cars under $30,000,” he said, adding that increased prices could impact lower-income buyers.

Honda-Nissan Merger Would Create a New Automotive Giant

Automobile Industry, , , , ,

The proposed merger between automotive companies Honda and Nissan represents a significant shift in the global automotive landscape. If actualized, it would create the world’s third-largest automaker, behind Toyota and Volkswagen, with a combined market value exceeding $50 billion. Discussions between Honda and Nissan are expected to conclude by June 2025, but it is thought that a new, merged entity would fall under a parent company listed on the Tokyo Stock Exchange, with Honda nominating most of the board members. It is projected that the new entity could generate $191.4 billion and an operating profit exceeding $19.1 billion.

The merger aims to address several key industry challenges through strategic collaboration. By standardizing vehicle platforms and integrating research and development, the companies expect to reduce development costs while accelerating innovation in electric vehicles (EVs) and intelligent driving systems. Honda’s operational effectiveness would complement Nissan’s expertise in SUVs and EV batteries, creating a more comprehensive product portfolio.

Manufacturing efficiency also stands to improve through streamlined production systems and integrated supply chains. The combined entity would offer a diverse range of vehicles, from traditional internal combustion engines to hybrid and fully electric models, meeting varied customer needs worldwide.

The timing of this merger aligns with the industry’s transition toward electric and autonomous vehicles. While immediate benefits include operational cost savings and enhanced market competitiveness, the partnership is viewed as a long-term strategic initiative, with significant results expected post-2030.

In key markets like India, the merger could strengthen their position against emerging competitors, particularly Chinese EV manufacturers. The combined resources would enable faster development of new technologies while spreading investment costs across a larger production base.

This strategic alliance reflects the broader trend of automotive consolidation as manufacturers seek to navigate the complex transition to electric mobility while maintaining competitiveness in an evolving global market.