Nissan slashes production on two major vehicles

Nissan is cutting the output of two of its most popular models – the compact Rogue and Frontier pickup. 

The cuts include slashing the production of the two Nissan vehicles by up to 40,000 units in September and October, according to an email obtained by Automotive News.

Why it matters:  The Rogue is Nissan’s best-selling vehicle and, together with the Frontier, accounted for 40% of Nissan’s sales in the first half of 2024. Yet, so far this year, Nissan has struggled with an oversupply of vehicles.

Big picture: Heading into 2024, Nissan dealers had an average new car days' supply of 106, over 5 weeks higher than the national average of 70 days — prompting Nissan to cut its U.S. output in Q1 by 6%, or roughly 10,200 vehicles.  

• Above-average incentives helped bring days’ supply down to 81 in August, but the Rogue hovered around 89 days, and the Frontier stood at 111 — leading to more production downtime.

• Nissan’s efforts to lower its days’ supply include trimming production at its plants in Smyrna, TN, and Canton, MS.

• Rogue production at the Smyrna plant will be cut from five days a week to four through the end of October. 

• Frontier output at the Canton plant will be cut from five days a week to four through March 31. 

Worth noting: Nissan is also delaying plans to build its next-generation EVs at its Canton facility, putting on hold a $500 million investment in the plant.

Zoom out: But many dealers have shared that their profitability and inventory issues stem mostly from a mismatch between price and product. In May, Nissan started allowing its dealers to discount the 2024 lineup by up to 10% below invoice to make way for incoming 2025 models — further dinging dealer profits, which are down to their lowest levels in 15 years.

Bottom line: One way or another, Nissan has to stop the bleeding, and production cuts alone likely won’t be enough.

Become an automotive insider in just 5 minutes.

Get the weekly email that delivers transparent insights into the car market.

Join 77,000 others now, it's free:

In today's automotive landscape, car buyers invest more time than ever in researching, considering, and comparing options. But for dealers, the challenge lies in pinpointing the audience ready to make a purchase.

Enter Premier by Edmunds.

Premier offers dealers a groundbreaking way to connect with in-market car shoppers precisely when, where, and how they prefer. With over 20 million monthly visits, Edmunds.com is the go-to destination for buyers seeking market insights, expert advice, and budget tools to make informed decisions.

Through Edmunds Premier, dealers gain access to this highly coveted audience. Simply list your new and used inventory on Edmunds, and watch as qualified, in-market traffic flows directly to your vehicle detail pages on your website.

Don't miss out on this opportunity to elevate your dealership's visibility and sales performance. You can sign up for Premier today at Edmunds.com/CDG.