Nissan threatens to move Its prized Rogue production from TN

They don’t have the balls to do it. They don’t hold the same weight as Toyota, Honda, or GM. Just the black lash from closing a plant in TN with a good loss of sales is something they can ill afford.

Considering the quality of the current Rogue is questionable at best, cutting costs more would be a bad idea….
 
Not surprising. Nissan always has low balled suppliers. Once a contract is awarded, and launch of the NMY, six months like clockwork, Nissan reps will show up to cut their cost.... Sometimes it is removing a paint process on a plastic part and leave it bare, but they keep coming to the point the supplier is ´at cost´ and can´t recoup the R&D of the product.

Nobody likes Nissan, and nobody has the majority of their contracts with Nissan, cause that would sink your company.

Right now, Nissan is only utilizing something like 52% of total capacity at their Smyrna and Canton plants which is disastrous, so it would be way better for Nissan to shut down at least one of their plants.

That's the reason why Tesla keeps doing price reductions instead of reducing or even halting production b/c the latter is more costly.

Everyone already knows that Nissan's product line aren't competitive and that Ghosn's cost cutting had seriously hampered Nissan's ability to compete I guess Nissan has no Mexico plants. Not great foresight, considering.

Average OEM profit margin is like 9%. Asking for a 20% discount is laughable. If Nissan can't keep the US factory open based on current US parts costs then just move production to Japan. It would suck for the OEM suppliers and the workers, but Nissan needs to do what they need to do.
 
Last edited:
They'll figure it out. Seems to me the cost of building a vehicle factory is a big cost to eat. Unless current factory utilization coupled with high supplier cost and labor is unacceptable...

Perhaps they see the emergence of EVs in America as a market share problem?
 
I may be wrong but I have read that manufacturing in Japan is not a cost saver anymore. Maybe Vietnam or Ghana to save some manufacturing dollars. I imagine other end users pressure their suppliers. I know that Walmart just about bankrupted Rubbermaid with its practices.
 
And moving a plant back to Japan is the cheaper alternative? I don't see any cost numbers so it's anyone's guess.
 
Back
Top