Nissan has announced a significant adjustment to its US operations, stating that it will no longer be accepting new orders from American customers for its Infiniti QX50 and QX55 SUVs that are manufactured in Mexico. This decision comes as a direct consequence of the recently implemented 25% tariffs on imported vehicles by the United States.
The affected Infiniti models are produced at the COMPAS (Cooperation Manufacturing Plant Aguascalientes) plant in Mexico, a joint venture between Nissan and Mercedes-Benz. While production of the QX50 and QX55 will continue at the Mexican facility, these vehicles will now primarily be directed towards other markets, including Canada and the Middle East.
This move represents a notable scaling back of Nissan’s operations at the Mexican plant, particularly concerning as the US market has historically been the primary destination for these two Infiniti SUV models. Data from Mexico’s national statistics agency indicates that the QX50 and QX55 have almost exclusively been exported to the United States.
Simultaneously, Nissan has announced a reversal of a previous decision regarding its Rogue SUV production in Smyrna, Tennessee. The automaker will now maintain two production shifts for the Rogue, safeguarding jobs that were previously slated to be cut. This suggests a strategic pivot towards domestically produced vehicles to mitigate the impact of the tariffs.
This decision underscores the significant challenges that the new US tariffs pose for automakers with substantial import operations. Nissan, which reportedly exports the largest number of vehicles from Mexico to the US among Japanese manufacturers, is particularly exposed to these trade barriers. The company has been grappling with an aging product lineup and a lack of hybrid options in the US market, further compounding its difficulties.
The halt in new US orders for the Mexican-built Infiniti SUVs signals a direct and immediate impact of the US tariffs on Nissan’s business strategy. It remains to be seen how long this measure will remain in place and what long-term adjustments Nissan will make to its North American production and sales strategy in response to the evolving trade landscape.