Nissan Could Build Up to 50% of Rogues in Japan

Nissan faces a critical juncture after failed partnership talks with Honda, forcing the struggling Japanese automaker to independently address its financial challenges. One potential strategy to bolster its competitiveness, particularly in the crucial US market, involves shifting some production of the next-generation Rogue SUV to Japan.

Currently, US-bound Rogue models are manufactured in Smyrna, Tennessee, and also exported from Kyushu, Japan. However, future plans could see up to half of all Rogue models assembled in Japan. This shift is driven by cost considerations, as reports suggest building the Rogue in Japan could be 20% cheaper than in the US, largely due to favorable exchange rates.

The Rogue is a vital model for Nissan, representing over a quarter of its US sales. The fourth-generation Rogue, anticipated around 2027, is expected to feature e-Power series hybrid and plug-in hybrid powertrains. These electrified versions could be exclusively produced in Japan, while the Tennessee plant might focus on less expensive, combustion-engine variants.

Sources indicate that manufacturing the higher-priced electrified and upper trim levels in Japan makes better financial sense. However, Nissan North America’s manufacturing chief, David Johnson, has stated that the automaker intends to build at least some Rogue PHEV models in the US.

Finalizing production plans requires negotiations with US-based suppliers. Discussions aimed at cost reduction have reportedly been ongoing for over a year to safeguard production in Tennessee. In 2024, Nissan even requested some suppliers to cut prices by 20%.

In 2023, Nissan sold 245,724 Rogues in the US, with approximately 60% coming from the Smyrna plant. While shifting production to Japan could offer cost savings, it also carries the risk that exchange rates may not remain advantageous throughout the new model’s lifespan.