Nissan may shift production of the next-generation Rogue from the U.S. to Japan if it is unable to significantly lower its purchasing costs.
The company currently builds the Rogue at its plant in Smyrna, Tennessee, and in Kyushu, Japan. The Smyrna site also builds the Nissan Leaf, Murano and Pathfinder, as well as the Infiniti QX60, but given that the Rogue is Nissan’s best-selling vehicle in the U.S., it is arguably of the most importance to the brand. The site has an annual capacity of 640,000 vehicles, employs 6,700 workers, and the Rogue accounts for almost 40% of total output.
During a recent meeting with suppliers at the Nissan North America headquarters, the carmaker requested a reduction in parts pricing by an average of 20%. Certain suppliers were tasked with cutting prices by as much as 30%. If they are unable to meet Nissan’s demands, the company may be forced to move all Rogue production to Japan, where it claims to currently manufacture it for 20% less than in the U.S.
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While speaking with Auto News after the meeting, a supplier said “[Nissan] told us that if we can’t get closer to Japan’s cost, they will move production [to Kyushu].”
It is understood that the company has asked its suppliers to submit price quotes for the new Rogue by the end of this week before Nissan North America presents its manufacturing cost plan to Nissan Motor Co. executives in Japan who, in February, will decide on the future of Rogue production in the U.S.
“I’ve never heard of [an original equipment manufacturer] asking for this magnitude of price reduction and threatening to move a whole vehicle production to another country,” co-chair of the global automotive practice at Butzel Long, Daniel Rustmann, said on the matter.
Unnamed sources suggest that Nissan may choose to free up capacity in Japan for the Rogue by shifting some other production to China. Losing the Rogue would be a big blow for the Smyrna site as production of the current-generation Leaf is also expected to end at the plant in mid-2025.
“Pushing the Rogue to Japan will add considerable red ink to Nissan’s U.S. ledgers,” added AutoForecast Solutions vice president Sam Fiorani. “Closing a plant could be in Nissan’s future.”
