(January 22, 2024) Nissan has told suppliers it is considering moving U.S. production of the next-generation Rogue crossover to Japan if the automaker cannot lower its purchasing costs, according to Automotive News. The Rogue, Nissan's bestselling U.S. model, is built in Smyrna, Tenn., and Kyushu, Japan. The compact crossover accounts for one-third of Nissan's sales in its largest market.

Losing the Rogue would be an enormous blow to Nissan's 6-million-square-foot Smyrna assembly plant, which employs 6,700 workers. The Rogue accounts for about 40 percent of the factory's annual output — or nearly 200,000 vehicles. Nissan sold 271,458 Rogue crossovers in the U.S. last year, a 46 percent increase over 2022.

At a meeting at Nissan North America headquarters in Franklin, Tenn., on Jan. 11, the automaker told suppliers it expects a "significant reduction" in the cost of parts for the fourth-generation Rogue, scheduled to begin production in late 2026.

Nissan asked suppliers for an average 20 percent cut in parts pricing, people briefed on the matter told Automotive News. Some suppliers were asked to slash prices by up to 30 percent.

At the meeting, attended by Nissan Americas Chairperson Jeremie Papin, Nissan North America manufacturing chief David Johnson and Nissan Americas procurement boss Andrew Wareing, the automaker said it builds the Rogue for 20 percent less in Japan than in the U.S. Nissan said it has reduced its internal manufacturing costs in the U.S. by 18 percent.

Nissan is also expected to pull U.S. production of another key model, the electric Leaf hatchback.

Source: Automotive News