Nissan Might Relocate Sentra Production To The US, But You'll Bear The Cost | Carscoops

      Nissan may require up to six months to transfer Sentra production equipment from Mexico to the United States.

      Last year, Nissan sold 152,659 Sentra sedans in the U.S., representing 20% of total sales.

      Relocating Sentra manufacturing from Mexico could help avoid tariffs, though it may lead to increased vehicle prices.

      The company recently abandoned plans for two new electric sedans designed for the U.S. market.

      Nissan is currently facing significant challenges, having confirmed plans to cut 20,000 jobs, shut down seven factories, and reduce the number of vehicle platforms it utilizes. Additionally, the company aims to expedite the development of new models. Amidst these substantial changes, Nissan is reportedly exploring the possibility of relocating production of its popular Sentra sedan from Mexico to the United States as a strategy to enhance its financial standing and evade the 25% tariffs imposed on imported vehicles.

      Production of Sentras destined for the U.S. is presently managed by Nissan’s manufacturing facility in Aguascalientes, Mexico. However, Nissan recognizes the importance of maintaining affordable pricing for its vehicles. If production continues in Mexico, price increases will be unavoidable, as the brand cannot absorb the additional costs.

      Although Nissan has not officially confirmed these production changes, an unnamed supplier informed Auto News that a shift is being considered. The Sentra had a strong performance in the U.S. last year, with sales of 152,659 units, accounting for about one-fifth of the brand's total sales in the country.

      Transitioning production to the U.S. would allow Nissan to avoid tariffs but would involve trade-offs, including a significant rise in labor costs, which might necessitate further price adjustments for consumers. While this may be difficult for buyers, it could be perceived as a positive outcome for President Trump, who has consistently advocated for localized manufacturing and has integrated regionalization into his tariff policies.

      If production is moved to the U.S., the Sentra is likely to be manufactured at a currently underutilized facility in Canton, Mississippi. This plant primarily produces the Altima and Frontier, operating at just a 51% utilization rate. Nissan initially planned to manufacture two new electric crossovers and two electric sedans at this location but has recently ceased work on the sedans and is reevaluating the timeline for the crossovers.

      The unnamed supplier stated that Nissan would need approximately three to six months to reconfigure the Mississippi facility for Sentra production.

      Nissan’s leadership understands the necessity of keeping the Sentra affordable. In discussions regarding the potential production shift, Christian Meunier, chairman of Nissan Americas, stressed the importance of "finding a way to keep the affordability of these cars."

      Similarly, CEO Ivan Espinosa noted in the company's most recent quarterly earnings report that the brand has managed to mitigate about 30% of the tariff impacts thus far, but stresses that price pressures remain a concern.