Nikkei: Nissan to supply pickup trucks manufactured at Mississippi plant to Honda

Nikkei: Nissan to supply pickup trucks manufactured at Mississippi plant to Honda

Nissan has temporarily halted production of its Pathfinder, Murano, and Frontier models for the Canadian market due to ongoing tariffs between the U.S. and Canada. The production halt, which began in May, affects vehicles made at Nissan's Tennessee and Mississippi plants [2]. Despite this, Nissan has stocked up on these models and expects the current 25% tariff to become less stringent in the future [1].

The suspension of production is expected to be relatively short-lived, according to Automotive News Canada [1]. Christian Meunier, chairman of Nissan Americas, stated that the halt is more of a suspension than a permanent stop. The Infiniti QX60, also made in Tennessee, will be imported in limited volumes starting later this summer [1].

Nissan's top-selling model, the Rogue, is manufactured in Japan, while the Kicks and Sentra are made in Mexico. The Murano, Pathfinder, and Frontier accounted for 1,286, 1,239, and 728 sales respectively in the first quarter of 2025 [1]. The Infiniti QX60, which is the best-selling model for the brand in Canada, will receive a refresh for 2026 and is expected to account for more than 60% of the brand's sales in 2024 [1].

In a significant development, Nissan is set to supply pickup trucks manufactured at its Mississippi plant to Honda. This move is a strategic response to the production halt and the ongoing tariffs. The exact details of this arrangement are yet to be announced, but it is a clear indication of Nissan's efforts to mitigate the impact of the tariffs on its supply chain [2].

Nissan shares were trading down 3.0% by mid-morning in Tokyo, underperforming the benchmark Nikkei index [2]. The tariffs have also affected other automakers, with Mazda halting Canada-bound production at its Alabama plant while boosting production for the U.S. market [2].

The production halt and the subsequent supply agreement with Honda highlight the complex dynamics of the automotive industry in the face of trade tensions. As the situation evolves, investors and financial professionals should closely monitor the developments to assess their potential impact on Nissan's financial performance and market position.

References:
[1] https://driving.ca/auto-news/industry/nissan-pathfinder-murano-frontier-canada-production-halt-america-tariffs
[2] https://www.theglobeandmail.com/drive/article-nissan-suspending-production-of-three-vehicle-models-for-canada-at-two/