Nissan Motor’s newly appointed head for the Americas has announced plans to optimize production at the automaker’s largest facility in the United States, coinciding with President Donald Trump’s imposition of a 25% tariff on imported vehicles.
Christian Meunier, who took on the role of chairman of Nissan Americas in January, indicated that the tariffs are catalyzing necessary adjustments for the company to bolster domestic production as it seeks to revitalize its struggling U.S. operations.
“Our facilities have substantial capabilities, and currently, they are not operating at maximum efficiency. We see opportunities to enhance our production capacity,” Meunier stated during a virtual interview on Finance Newso. “We are focusing on boosting sales of vehicles made in the U.S. while reevaluating imports from Mexico and Japan.”
Meunier expressed his ambition to fully utilize the 6-million-square-foot manufacturing plant located in Smyrna, Tennessee, which has a potential annual output of 640,000 vehicles across three shifts. Last year, the facility produced over 314,500 vehicles on two shifts and employs approximately 5,700 workers.
“Maximizing our capacity and restoring Smyrna to its former prominence is my primary objective,” he said. “We need to fill the plant to capacity and return to profitability.”
While Meunier did not provide a specific timeline for achieving this production goal, he noted the complexities involved in altering production strategies and bringing new models to market. “We can ramp up production of existing U.S. models and commit to introducing new vehicles within the next two years; however, such changes are not instantaneous,” he explained.
His remarks followed President Trump’s recent assurances that he is open to providing support to automakers as they adjust their production plans.
Looking ahead, Nissan is considering the integration of hybrid vehicle production at the Smyrna plant, along with the introduction of new models such as those under the Infiniti brand. Meunier also mentioned a focus on increasing production of vital components like engines and enhancing the domestic content in their vehicles.
“The positive aspect is our flexibility. We can accelerate our efforts and adapt more rapidly than we typically would,” Meunier noted. “Even prior to the tariffs, I was committed to improving localization strategy.”
Tariffs on imported vehicles have been imposed since April 3, despite Trump recently easing some other tariffs. Furthermore, a new 25% tariff on automobile parts is set to go into effect by May 3, which Meunier warns could negatively impact Nissan’s operations and growth strategies.
“We hope for solutions that are not detrimental, in terms of the full extent of 25% tariffs, which is quite significant,” he stated. “We are optimistic for a viable compromise.”
Nissan operates two assembly plants in Mexico that produce a range of vehicles, including the Nissan Kicks and Nissan Versa. Reports indicate that Nissan produced nearly 670,000 vehicles in Mexico in 2024, with over 456,000 being exported according to UnoTV in Mexico.
In the United States, Nissan boasts assembly plants capable of producing more than 1 million vehicles annually, along with 1.4 million engines, 1.4 million forgings, and 456,000 castings. However, the company only produced approximately 525,600 vehicles in the U.S. in 2024.
In addition to Smyrna, Nissan has significant manufacturing operations in Tennessee and a large facility in Canton, Mississippi, where the Nissan Altima sedan and Nissan Frontier pickup truck are produced, employing around 5,000 individuals across varying shifts.
Meunier identified vehicles such as the Rogue, Pathfinder, and Frontier, which has seen a notable decline in market share, as having significant potential for growth within the U.S. market.
In response to tariffs, Nissan recently reduced prices on the Rogue and Pathfinder by amounts ranging from $640 to nearly $2,000, depending on the model. The company also paused new orders for two SUV models from its Infiniti luxury brand that were manufactured in Mexico.
“While Nissan has faced challenges, we have a robust plan in place,” Meunier concluded. “We are launching strong new products and remain confident in our ability to turn the situation around despite the tariffs.”
