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Nissan is ready to begin moving production of its Sentra compact sedan from Mexico to the U.S.

  • Writer: 17GEN4
    17GEN4
  • May 15
  • 3 min read

Recent reports indicate Nissan is considering relocating some vehicle production from Mexico to the United States, primarily to mitigate the impact of U.S. tariffs on imported vehicles. These tariffs, implemented by the Trump administration, impose a 25% levy on cars built overseas, prompting Nissan to reassess its manufacturing strategy. Below is a detailed summary of the developments based on reputable sources:


  • Sentra Production Shift: Nissan is evaluating moving production of its Sentra compact sedan from Mexico to the U.S. to avoid the 25% tariffs effective April 3, 2025. This aligns with broader reshoring trends but may increase costs due to higher U.S. labor and operational expenses. Posts on X from May 14, 2025, citing Automotive News, consistently report this potential shift, though no official confirmation from Nissan specifies a timeline or U.S. facility.


  • Rogue SUV Production Adjustments: Nissan plans to increase production at its Smyrna, Tennessee, facility, which has a capacity of 640,000 vehicles annually but produced 314,500 in 2024. The company aims to "max out" this plant, potentially by shifting Rogue SUV production from Japan and Mexico. A Reuters report from April 15, 2025, notes Nissan will cut Rogue production in Kyushu, Japan, by 13,000 units from May to July 2025, redirecting some U.S.-bound Rogue manufacturing to Smyrna. This follows Nissan’s decision to maintain two shifts for Rogue production in Smyrna, reversing a planned reduction.



17GEN4.com 17GEN4 News - Nissan is considering moving production of its Sentra compact sedan from Mexico to the U.S.
17GEN4.com 17GEN4 News - Nissan is considering moving production of its Sentra compact sedan from Mexico to the U.S.


  • Infiniti SUV Production Halt: Nissan has stopped taking U.S. orders for the Mexican-built Infiniti QX50 and QX55 SUVs due to the tariffs, as reported by Bloomberg on April 3, 2025. This indicates a scaling back of operations at a joint venture plant in Mexico, with no immediate plans to relocate this production to the U.S.


  • CEO Statements and Strategic Context: Nissan’s CEO, Makoto Uchida, stated in February 2025 that the company might need to transfer production from Mexico, where it exports 320,000 vehicles annually to the U.S., if tariffs persist. Potential U.S. destinations include Smyrna, Tennessee, and Canton, Mississippi, where Nissan already operates. Uchida’s comments, reported by Reuters and Fox Business, highlight the financial strain, as tariffs could severely impact profitability. However, Nissan México’s CEO, Rodrigo Centeno, emphasized on April 7, 2025, that short-term production plans in Mexico remain unchanged due to the complexity of moving manufacturing.


  • Economic and Market Impact: Nissan produced nearly 670,000 vehicles in Mexico in 2024, with 456,000 exported, 320,000 to the U.S. A production shift could disrupt Mexico’s auto industry, a key economic sector under the USMCA. Reports suggest Nissan is also cutting global capacity by 20% and reducing 20,000 jobs, including 6,500 in the U.S., to address financial challenges, including a projected 700-750 billion yen net loss for the fiscal year ending March 2025.


  • Mixed Signals from Nissan México: Despite global considerations, Nissan México has reaffirmed its commitment to local production, with Centeno stating in February 2025 to El Financiero that there are “no plans” to end operations in Mexico, where Nissan is the top-selling brand. This contrasts with Uchida’s global perspective, creating uncertainty.


Sources:

  • Reuters: Reports on Rogue production cuts in Japan (April 15, 2025) and Uchida’s tariff comments (February 16, 2025).

  • Bloomberg: Infiniti SUV order halt (April 3, 2025).

  • Fox Business: Uchida’s tariff-driven production shift comments (February 16, 2025).

  • Mexico News Daily: Nissan México’s commitment to local production (April 7, 2025).

  • Automotive News (via X posts): Sentra production relocation consideration (May 14, 2025).

  • CNBC: Smyrna plant capacity goals (April 16, 2025).


Analysis: Nissan’s potential relocation is driven by tariff avoidance but complicated by its financial restructuring and Mexico’s entrenched role as a low-cost production hub. The Smyrna plant’s spare capacity makes it a likely candidate for increased production, but significant shifts, like the Sentra, remain unconfirmed and logistically complex. Nissan’s dual messaging—global tariff concerns versus local commitment in Mexico—reflects strategic caution amid trade policy uncertainty. For the latest developments, check reputable outlets like Reuters or Bloomberg.



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