Nissan To Boost US Production Amid Trump Tariffs

Introduction to Nissan’s New Production Plans

Nissan Motor’s new Americas leader said 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 started as chairman of Nissan Americas in January, said the tariffs are accelerating already needed plans for the automaker to increase domestic production to assist in a turnaround of its embattled U.S. operations.

Current Production Capacity and Plans

"We have big facilities, big capacities and today we don’t have max capacity. We still have more room to improve our capacity," Meunier told CNBC during a virtual interview Wednesday. "We’re looking into selling more of the U.S. products, and adjusting, along the way, vehicles that are coming from Mexico and from Japan." Meunier said his "ultimate goal" is to "max out" capacity at the automaker’s 6-million-square-foot facility in Smyrna, Tennessee. The facility is capable of producing 640,000 vehicles a year on three shifts, he said. It produced more than 314,500 vehicles last year on two shifts with about 5,700 people.

Increasing Production and New Products

Meunier declined to speculate on a timeframe for hitting that maximum production at the plant, which currently makes four products, including the automaker’s Nissan Rogue – its top-selling vehicle domestically. He said it takes time to change plans and move production. "We can increase production, as I described on the existing models that we have in the U.S., and commit to a plan to bring a product the next two years … or a couple products to the U.S. market. But it cannot happen overnight," he said. Nissan is looking at adding hybrid production to Smyrna as well as new products such as an Infiniti model, Meunier said. He also said the company is analyzing production increases for powertrain components such as engines and increasing domestic content.

Impact of Tariffs on Production

Meunier’s comments come two days after Trump said he’s looking to potentially "help" some automakers, saying the companies need time to alter production plans. Tariffs on imported vehicles into the U.S. have been in effect since April 3, despite Trump’s pullback last week on other country-based levies. Additional 25% tariffs on auto parts are scheduled to take effect by May 3. Meunier said those potential parts tariffs would hurt the company and its plans. "Hopefully there will be solutions that don’t hurt completely, to a full extent at 25% because that’s a lot," he said. "Hopefully there will be a compromise in between."

Nissan’s Existing Operations

Nissan has two assembly plants in Mexico that produce a variety of vehicles, including imports such as the Nissan Kicks and Nissan Versa. In 2024, Nissan reportedly produced nearly 670,000 units in Mexico, with over 456,000 being exported, according to UnoTV in Mexico. In the U.S., Nissan says it has assembly facilities capable of producing more than 1 million vehicles, 1.4 million engines, 1.4 million forgings and 456,000 castings annually. Of that full capacity, the automaker produced nearly 525,600 vehicles in the U.S. in 2024.

Conclusion

Nissan is working to increase its production in the U.S. to mitigate the effects of the tariffs. The company is looking to "max out" its production capacity at its Smyrna, Tennessee plant and is considering adding new products and hybrid production. While the tariffs pose a challenge, Meunier is confident that the company can turn its U.S. operations around with its current plans and products.

FAQs

Q: What is Nissan’s goal for its Smyrna, Tennessee plant?
A: Nissan’s goal is to "max out" production at its Smyrna, Tennessee plant, which has a capacity of 640,000 vehicles per year.
Q: How many vehicles did Nissan produce in the U.S. in 2024?
A: Nissan produced nearly 525,600 vehicles in the U.S. in 2024.
Q: What products is Nissan considering adding to its Smyrna plant?
A: Nissan is considering adding hybrid production and new products such as an Infiniti model to its Smyrna plant.
Q: How will the tariffs affect Nissan’s production plans?
A: The tariffs will accelerate Nissan’s plans to increase domestic production and may require the company to adjust its production plans and supply chain.
Q: What is the current capacity of Nissan’s Smyrna plant?
A: The Smyrna plant currently produces more than 314,500 vehicles per year on two shifts with about 5,700 people.