Nissan Slashes US Production Output

Nissan has announced a 17% reduction in U.S. production through March 2025 compared to the previous year.

The decision affects two major facilities: the Canton assembly plant in Mississippi, which produces the Frontier pickup truck, and the Smyrna factory in Tennessee, responsible for building the popular Rogue crossover. These two models together account for about 30% of Nissan’s U.S. sales, highlighting the potential impact of these cuts on the brand's market presence.

Nikkei reports the production adjustments are an extension of a previously announced reduction through December 2024, which saw both factories move from five-day workweeks to four. Nissan says it is reevaluating its production strategy to align better with market trends and declining demand.

The production cuts come on the heels of other cost-saving measures. Globally, Nissan is slashing 9,000 jobs and reducing overall output by 20%. In the U.S., the company has offered early retirement packages to around 1,000 employees—approximately 6% of its local workforce—as part of its restructuring efforts.

In a bid to stabilize its finances, Nissan recently sold over 149 million Mitsubishi shares. Two senior company officials have warned that the brand’s survival hinges on securing a new anchor investor within the next 12 to 14 months.

In August, Nissan announced a collaboration with Honda and Mitsubishi to develop EVs and software. While this partnership has been framed as a cooperative venture, former Nissan and Renault executive Carlos Ghosn speculated that it could signal a disguised takeover of Nissan and Mitsubishi by Honda.

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