Nissan Eyes Increased US Manufacturing Output as New Rogue Hybrid Nears Debut

Deep News
09/21

Nissan is evaluating plans to scale up its production capacity within the United States. This consideration comes as the company prepares to launch the 2027 model year Rogue crossover SUV, which will include an all-new hybrid variant that Nissan believes will be a critical draw for American buyers.

Christian Meunier, who serves as the chairman of Nissan's Americas region, indicated that the company's US facilities are currently running at near full capacity under existing schedules. He noted that the next logical step would be introducing a third production shift. Meunier expressed confidence that the arrival of the new Rogue, especially with its hybrid powertrain option, would enable the company to achieve this expansion quickly in the coming months. The Japanese automaker currently operates its 6-million-square-foot assembly plant in Smyrna, Tennessee, using two daily shifts to produce the Rogue along with other Nissan and Infiniti crossover models. Nissan also operates a large manufacturing facility in Canton, Mississippi, which handles production for the Altima sedan and Frontier midsize pickup. Typically, adding output at an auto assembly plant translates into the creation of hundreds, or even thousands, of new jobs. The automaker's plans to boost its American manufacturing footprint come at a time when the administration is actively pushing for increased domestic auto production and job growth within the sector.

Nissan anticipates that production of the Rogue hybrid will begin within the United States next year. Prior to that, the gasoline-powered version of the 2027 Rogue is scheduled to enter production at the Tennessee facility in the spring. Meunier explained that, in order to bring the hybrid to market more quickly and stimulate sales, the company plans to initially import these specific models from Japan before domestic assembly of the hybrid gets underway. This strategy is also intended to support the company's ongoing global business recovery initiative. Meunier stated that if Nissan successfully adds a third shift at both of its US assembly plants, annual production capacity in the country could approach one million vehicles, compared with output of nearly 487,000 units recorded in 2025. Nissan has set a target for 80 percent of its US vehicle sales to be produced domestically by 2030. However, the company currently has no plans to construct new manufacturing facilities. Meunier believes that Nissan's existing infrastructure and resources are sufficient to achieve its objectives without undergoing substantial investments in new construction. He suggested that the consideration of a new factory might be relevant only after 2030, with the company planning to reassess the situation in the next four to five years.

Nissan officially unveiled the 2027 Rogue for the American market on Monday, introducing its new "e-Power" technology for the first time in the US. The e-Power system functions as a series hybrid, where the internal combustion engine does not directly drive the wheels. Instead, the gasoline engine operates as a generator to supply power to an electric motor, which is solely responsible for propelling the vehicle. This operational concept is similar to extended-range electric vehicles that have gained traction in recent years, although the e-Power system features a smaller battery pack and does not require external charging. In essence, the wheels are always driven by the electric motor, with the engine serving only to generate electricity. Meunier noted that upon rejoining Nissan in January 2025, after a four-and-a-half-year tenure at Jeep, his top product priorities were the Rogue hybrid and the reintroduction of the Xterra off-road SUV. He disclosed that he had twice requested that the company accelerate the US launch timeline for the Rogue hybrid to ensure its swift arrival in the market.

The Rogue represents one of Nissan's most significant models in terms of US sales volume. It operates in the highly competitive small crossover segment, facing formidable rivals such as the Toyota RAV4 and Honda CR-V, both of which currently offer best-selling hybrid versions in this category. Meunier asserted that the hybrid system being introduced with the Rogue will serve as a major catalyst for the company's commercial performance. He emphasized that Nissan's historical growth in the US market without a hybrid offering was quite an achievement, especially given the increasing consumer preference for hybrid technology. The company is positioning the Rogue e-Power as a direct competitor to the Toyota RAV4. Meunier even suggested that this competitive strategy could involve an unconventional marketing approach, where potential buyers might have the chance to test-drive both the Rogue and the RAV4 at Nissan dealerships, despite dealerships typically not carrying Toyota vehicles for demonstration purposes.

Nissan's renewed emphasis on the Rogue hybrid aligns with the broader industry's recent difficulties regarding fully electric vehicles. The company, along with many other automakers, has incurred substantial financial losses in the EV sector due to weakening regulatory support and lower-than-anticipated consumer demand. Nissan has previously communicated that e-Power technology could be a more appropriate fit for American customers than pure EVs or even conventional hybrids, particularly within the context of elevated fuel prices. Meunier believes that this technology will alter how consumers perceive the Nissan brand, potentially attracting individuals who previously never considered purchasing a Nissan vehicle once the hybrid becomes available.

Nissan's intensified focus on the US market forms a core component of its global restructuring plan. This strategy involves streamlining its vehicle lineup, discontinuing underperforming models, and ramping up the integration of technologies such as artificial intelligence. The plan outlines targets for the fiscal year ending in 2030, aiming for annual sales of 1 million Nissan-branded vehicles in the US market and 550,000 units sold domestically in Japan. Regarding the US market's current trajectory, Meunier expressed satisfaction with the progress made since his return to the company last year. Following several consecutive years of weak sales, Nissan's US volume has increased by approximately 10 percent in the first half of this year. For context, data from Cox Automotive indicates that the overall US auto industry experienced a sales decline of roughly 3 percent during the same period. Meunier remains optimistic about the near-term outlook, predicting a challenging yet ultimately successful period ahead, and anticipates finishing the calendar year with strong momentum by December.

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