Nissan’s October Production Declines Globally, Mexico Stands Out; Trump Tariff Threat Looms
Nissan Motor reported a 6% year-on-year decrease in global vehicle production for October, marking its fifth consecutive month of decline. While production fell at most of its manufacturing hubs, Mexico was an exception, with output rising 12% to 70,382 vehicles, making it a critical bright spot in the company’s global operations.
Global Production and Sales Overview
- Global Production: Output dropped in key markets:
- United States: Down 15%
- China: Down 15%
- Britain: Down 23%
- Japan: Down 4%
- Mexico: Increased 12%, contributing to nearly one-fourth of Nissan’s total October production.
- Global Sales: Sales decreased 3% overall, but key regional differences emerged:
- United States: Sales rose 13%, driven by strong demand for the compact Sentra sedan, marking the first sales growth in three months.
- Mexico and Canada: Positive sales growth observed.
- China and Europe: Double-digit declines contributed to the global drop.
Strategic Challenges
Earlier this month, Nissan announced plans to cut 9,000 jobs and reduce global manufacturing capacity by 20% as part of cost-cutting measures following sharp sales declines in China and the U.S.
However, President-elect Donald Trump’s recent announcement of a potential 25% tariff on imports from Canada and Mexico threatens to disrupt these restructuring efforts. Nissan has exported approximately 300,000 vehicles from Mexico to the U.S. this year, and any new tariffs could impact its competitiveness in the North American market.
Industry Context
Nissan’s performance contrasts with Toyota, whose global sales rose by 1.4% in October—the first increase in five months—despite ongoing production challenges.
Nissan CEO Makoto Uchida stated that the company is closely monitoring developments related to U.S. trade policy and tariffs, which could pressure Mexico’s advantageous production position and further strain the automaker’s recovery plans.
