- Favorable exchange rates make it cheaper to build the Rogue in Japan than the US.
- Sources suggest US-built models may be lower-end ICE versions to reduce costs.
- Nissan teased the long-awaited Rogue PHEV, which had been a notable omission.
Nissan had likely hoped that Honda could be its savior, but after partnership talks between the pair fell through, the struggling Japanese brand needs to go it alone and must quickly fix its precarious financial position. One way Nissan may be able to boost its competitiveness in the US is to increase production of the next-generation Rogue in Japan, helping it to lower costs.
As it stands, Rogue models sold in the US are built in Smyrna, Tennessee, and exported from Kyushu, Japan, but in the future, as many as 50% of all Rogue models could be assembled in Japan. The brand can reportedly build the Rogue in its home country for 20% less than in the States, thanks in part to current foreign exchange rates.
Read: Nissan Teases New Models, Rogue PHEV Looks like A Rebadged Mitsubishi Outlander
The Rogue is a hugely important model for the brand. It accounts for more than 25% of all Nissan sales in the US, and its fourth generation may launch as soon as 2027, Auto News reports. It’s expected to be offered with e-Power series hybrid and plug-in hybrid powertrains, and these two versions could be built exclusively in Japan. Nissan’s Tennessee plant may then be tasked with manufacturing the cheaper, combustion-only versions.
According to an unnamed sources, “the economics of building the more expensive electrified variants and upper trims is better in Japan.” However, according to Nissan North America manufacturing chief, David Johnson, the automaker does plan to build at least some Rogue PHEV models in the US.
Nissan will need to negotiate with its US-based suppliers before finalizing production plans for the new Rogue. Talks to lower costs have apparently been ongoing for more than a year in a bid to protect output in Tennessee, and in 2024, the automaker asked some suppliers to reduce prices by 20%.
Last year, Nissan sold 245,724 Rogues across the United States, and of these, approximately 60% were sourced from the Smyrna site. While moving more production to Japan could save Nissan money, it doesn’t come without risk as there’s no guarantee exchange rates will remain favorable throughout the new model’s lifecycle.
