Nissan to Expand U.S. Production with Third Shift as Part of Strategic Revival
Nissan is planning to increase its U.S. production capacity by adding a third shift at its assembly plants, including the Smyrna plant in Tennessee, ahead of launching the new Rogue model in 2027. This move aims to nearly double output from around 487,000 vehicles in 2025 to approximately one million annually without building new factories or making major capital investments. The decision marks a reversal for Nissan after it had previously considered reducing shifts and offering buyouts due to financial losses over the past two fiscal years. The company is now focusing on maximizing utilization of existing facilities, which carry high fixed costs but can yield higher profits as production scales up. This strategy aligns with its goal of producing 80% of U.S. sales domestically by 2030. Nissan's approach contrasts with Toyota’s recent $10 billion investment in the U.S., highlighting a different path to growth under new import tariffs and rising fuel prices, which may favor domestic production.
Topics: capacity utilization cost efficiency Nissan third shift U.S. production expansion