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Nissan eyes shifting Rogue production to U.S. due to tariffs
- 3eb7988a1663 2y agoIs that actually feasible or just marketing copy? Moving car production sounds like a multi-year effort. The latest tariff numbers might not even last the week. Or is this one of a, "99% constructed in Japan, but we attached the wiper blades in the USA" kind of manufacturing move?
- alephnerd 2y ago> a, "99% constructed in Japan, but we attached the wiper blades in the USA" kind of manufacturing move CDKs would still be hit by the 25% auto tariff (unrelated to the country level tariffs). It's already been manufactured in Tennessee since 2023, so what's most likely happening is Nissan will stop shipping parts from Japan and rely solely on their NAM supply chain. > Is that actually feasible or just marketing copy Most likely depends on scale. Most firms at Nissan size began building redundancy plans during COVID due to supply chain instability.
- 3eb7988a1663 2y agoI guess I am pre-disposed to believe there might be clever ways around it. I thought Ford was caught doing cute things to avoid the chicken tax by converting vans to trucks.
- alephnerd 2y ago> I thought Ford was caught doing cute things to avoid the chicken tax by converting vans to trucks Regulators don't take kindly to those kinds of shenanigans. Ford had to pay $365M in fines [0] for that stunt (which is around 6% of their yearly net income - painful in a low margins industry like car manufacturing). Volkswagen tried something similar in India as well and now needs to pay $2.5-3 Billion (17% of their year net income) as a result. [0] - https://www.reuters.com/business/autos-transportation/ford-pay-365-million-us-import-tariff-evasion-case-2024-03-11/ https://www.reuters.com/business/autos-transportation/ford-p...
- 3eb7988a1663 2y agoI only heard the start of the story, never about the penalties. Good to know that there is (eventual) enforcement.
- ttyprintk 2y agoClassical “tariff engineering” also includes a small, hidden pocket on some garments to make them into shirts.
- ArtTimeInvestor 2y agoWhen everything is produced on US soil, what stops the US from proclaiming that "What stands on US soil is owned by the US" and all the investments foreigners did were for nothing?
- dpratt 2y agoIn the same range of the probability of it happening anywhere else, but (if you’re honest with yourself) a bit lower. Seizure of property and/or nationalization of whole industries is not a novel concept.
- toomuchtodo 2y agoNothing. Build elsewhere and accept the loss of the market as a risk reduction premium.
- focusgroup0 2y agoRemember what happened to ARM? https://news.ycombinator.com/item?id=28329731 https://news.ycombinator.com/item?id=28329731
- jxjnskkzxxhx 2y agoWild read, thanks for sharing.
- RickJWagner 2y agoI have no idea why you’ve been downvoted. Downvotes are now a measure of emotion more than anything else. Validity isn’t a consideration.
- credit_guy 2y agoMaybe the US Constitution?
- vander_elst 2y agoSerious and genuine question, how? It seems that some of the layoffs in the administration might be illegal, however they still happened and there are no legal consequences yet. High ranked officials discussing national security matters on non approved platforms *is* illegal, yet nothing happened and I bet nothing will happen at all. Given this background, how will the Constitution prevent such a case?
- kgwxd 2y agoAny business shifting to the US right now will just be part of the corruption. Everyone else will avoid the US for a very long time.
- adra 2y agoYou know, the Nissan that has two feet i to the grave... I Surrre.
- tartoran 2y agoToo bad, I rather like Nissan.
- t-writescode 2y agoThis whole posting is 74 words, which I imagine is about the total amount of quotable thought Nissan has given to the topic. Given: * how long it would take to set up new manufacturing * how volatile constant changes are with boundless, randomized tariffs (it's only been 3 months, y'all) * how recent this newest set of tariffs are How can this article be anything more than 74 words built from 3 words overheard at a coffee shop?
- alephnerd 2y ago> This whole posting is 74 words, which I imagine is about the total amount of quotable thought Nissan has given to the topic. Nikkei is Japan's Financial Times (they own that too) or Wall Street Journal, so they have a strong relationship with Japanese, Chinese, Korean, ASEAN, and Indian businesses and policymakers. Nikkei is easily the best source of English language business news in APAC. There also wasn't any reference to "coffee shops" in the article either.
- alephnerd 2y agoFor reference, Nissan has been manufacturing the Rogue (and a number of their other models) in their Tennessee factory since 2023. What this is saying is they will stop co-mingling parts from their Japan, Thailand, China, and India suppliers, and stick to using their NAM suppliers.
- kubb 2y ago[flagged]
- casenmgreen 2y agoSounds risky : what happens if you do all the work to shift production to USA, and then Donald revokes tariffs?
- lobsterthief 2y agoAccording to many economists, this is a major reason why the tariffs won’t work.
- foogazi 2y agoThere are American made cars already Wouldn’t they just keep making them in the US ?
- acidmath 2y ago[dead]
- deleted 2y ago[deleted]
- outer_web 2y agoNote this isn't an announcement of a new factory but rather moving production of their most popular model out of Japan. TIL Nissan considers the Rogue their flagship model and they still make vehicles in Japan.
- lobsterthief 2y agoThat’s unfortunate since the Rogue is pretty awful in terms of build quality. Popular in the US though
- BuckRogers 2y agoHe said this is what would happen. I voted for him. And it’s happening. Nothing to be upset about. Even his deranged haters, some who have tried to murder him at least twice now and attack American Teslas, are going to benefit.
- lobsterthief 2y ago> Some who 2 people (one claims he voted for Trump in 2016) > attack American teslas Also a small number of people who have actually “attacked” Teslas
- BuckRogers 2y ago[flagged]
- commiepatrol 2y agoIt takes time, it will happen.