Nissant Shatai1 to cease output of NV200 van at Shonan plant

Nissant Shatai1 to cease output of NV200 van at Shonan plant

Nissan has temporarily suspended U.S. production of three vehicle models destined for Canada, including the Pathfinder and Murano SUVs, and the Frontier pickup. The move comes in response to retaliatory tariffs imposed by the Canadian government on U.S.-made vehicles, following the Trump administration's 25% tariff on auto imports in April. The production freeze is a short-term measure, with Nissan expressing hope that ongoing discussions between the U.S. and Canadian governments will lead to a resolution.

The production halt affects the Pathfinder, Murano, and Frontier models, which are assembled in Tennessee and Mississippi. Nissan has not specified when the suspension began or how long it will last. The company has also stated that 80% of its Canadian sales come from models sourced from Mexico and Japan, including the Versa, Sentra, and Rogue. The impact on Canadian dealerships and the availability of Nissan models remains uncertain.

The tariffs have disrupted cross-border auto flows and forced companies like Nissan and Mazda to shift their manufacturing priorities. Mazda, for instance, suspended Canada-bound production at its Alabama plant in May and reallocated manufacturing to focus on U.S. demand. Nissan sold around 104,000 vehicles in Canada last fiscal year, representing just 3% of its global sales.

The financial implications for Nissan are significant. The automaker reported a $4.5 billion net loss for the financial year ending in March and faces 700 billion yen (~$4.8 billion) in debt due this fiscal year. Its credit rating has been downgraded to junk status by all three major rating agencies.

The production suspension adds to Nissan's broader financial and operational challenges in 2025. The company has reportedly asked some suppliers to delay payments to improve liquidity amid slumping sales and an aging vehicle lineup.

References:
[1] https://www.livenowfox.com/news/nissan-canada-production-halt-tariffs