by Nissan may move Sentra production to the US
Nissan is going through a difficult period: the company is cutting 20,000 jobs, closing seven plants, and reducing the number of platforms it uses. At the same time, it is considering moving production of the popular Sentra model from Mexico to the US to avoid 25% tariffs on imported cars and improve financial performance.
Currently, the Sentra for the American market is produced in Mexico, but Nissan is trying to maintain the affordability of its models. If production remains in Mexico, the company will have to raise prices, as it cannot cover the additional costs. Sources report that Nissan is considering moving production to a plant in Mississippi, which is currently operating at only 51% capacity.
Labor costs vs. customs tariffs
Moving production to the US will help avoid tariffs but will increase labor costs. This could impact the final price for consumers. However, such a move aligns with the broader trend of localization supported by the US government.
Nissan’s management emphasizes the importance of maintaining the model’s affordability.
“We are looking for ways to keep our cars affordable,” said Christian Meunier, head of Nissan Americas.
CEO Ivan Espinosa also noted that the company has managed to offset only about 30% of the impact of tariffs, so price pressure remains.
If the decision is made, retooling the Mississippi plant could take three to six months. In any case, Nissan will have to balance production costs with the competitiveness of its vehicles in the market.
The cancellation of two electric sedans and uncertainty regarding new crossovers add instability to the company’s strategy. However, the Sentra remains a key model for Nissan in the US, so its future will be determined by both economic factors and changes in the global automotive industry.
