Nissan Motor Corp. is weighing the option of shifting some vehicle production from Mexico to Japan to mitigate the impact of a proposed 25% U.S. import tariff, CEO Makoto Uchida said during an earnings call.
The tariff, set to take effect in April, would apply to vehicles and goods imported from Mexico and Canada.
While relocating production could reduce costs, Uchida acknowledged that the move would still result in a “huge impact to profit.” Nissan, which produced 382,852 vehicles in Mexico last year, is considering this shift as a backup plan while exploring other strategies to maintain profitability.
With 76% of Mexico’s 3.5 million annual vehicle exports destined for the U.S., automakers like General Motors and Ford are also evaluating ways to protect their bottom lines.
