Nissan Targets 80% US Local Production by 2030, Kills Rogue Plug-In Hybrid

Tariffs Influenced the Shift

The shift towards local production is driven by the need to mitigate cost exposure from tariffs. Meunier explained:

"In April of last year, we had significant headwinds from the tariffs […] we pivoted toward building more US cars and localising all the cars and the parts,"

"The goal is to continue to increase this towards 80% in the future."

Mexico is responsible for much of the remaining gap. Plants in Aguascalientes and the now-closed CIVAC site once supplied more than a third of Nissan's US sales, but a 25% duty on non-compliant content added US$2,500-3,000 to budget models such as the Sentra and Kicks. With Japanese imports capped at a lower 15% rate, the remaining localisation gap means relocating cheap, low-margin cars rather than profitable SUVs.

The fate of Aguascalientes itself is unresolved. Nissan is reportedly considering selling the plant to a Chinese automaker — most likely BYD or Geely — with VinFast also reportedly among the bidders.

Three Nameplates Lead the Recovery

Nissan's US strategy now focuses on three domestically built models: the Rogue, Pathfinder and Frontier, which together account for 55% of its national sales. The automaker is concentrating resources on these models after its long-held 6-7% retail market share was nearly cut in half. Meunier highlighted the challenges faced:

"I would say the company had lost its fighting spirit, at least in the American region, especially in the US. I think there was not the same appetite for selling cars,"

The Plug-In Hybrid Casualty

The first casualty of this strategic shift is the Rogue plug-in hybrid, with North American production halted mere months after launch. Meunier's rationale:

"Plug-in hybrid in the US has almost disappeared because the incentives are gone from the government,"

Its effective successor, an e-Power Rogue due in November, will be imported from Japan. US production could potentially follow in 2028 depending on performance, which creates some tension with Nissan's pledge to localise "all the cars and the parts".

Rivals Are Building Locally

Nissan is not alone in its push for local production. Honda is reportedly finalising plans for a US$2.5bn hybrid plant in Ohio, and Toyota intends to spend US$1bn on electrified vehicles for North America. Nissan, by contrast, is localising from a position of restructuring and reliance on partnerships, such as the recent Honda collaboration, to achieve the scale it lacks alone.

Nissan's US recovery is therefore built on largely internal combustion engine trucks and SUVs, with electrification deferred and imported in the meantime. The 80% target is less a growth plan than a defence against tariff costs that its thin margins cannot absorb. Thus 2028 may be a critical test for Nissan's recovery plan: a US-built e-Power Rogue would give it a localised hybrid to set against Toyota and Honda, while further delay would leave Nissan competing with three nameplates as rivals electrify on US soil.