Could U.S. President Donald Trump’s tariffs push Nissan out of Mexico? That’s the lingering question after a series of conflicting statements this week from the company’s global and national leadership.
Nissan CEO Makoto Uchida said on Thursday that the Japanese automaker could relocate from Mexico if the 25% tariffs proposed by Trump were to take effect.
Shortly thereafter, officials at Nissan México told reporters there are no plans to put an end to local production operations, declaring that the company is committed to Mexico.
“We have no information with regard to moving our manufacturing operations to another country,” Nissan México told the newspaper El Financiero when questioned about Uchida’s statement.
“Globally, Nissan is taking steps to guarantee that our production aligns with and satisfies the needs of markets and clients while also strengthening the value of our portfolio,” it added.
In 2024, Nissan consolidated its position as the leader in the Mexican automotive market, according to data from the national statistics agency INEGI.
The Japanese car company sold 255,116 vehicles in Mexico last year, a 5.8% increase over 2023. This represented a 17% share of the Mexican market and made Nissan the top-selling car manufacturer in Mexico for the second year running.
Nissan sold a total of 241,056 light vehicles in Mexico in 2023, achieving 17.7% market share. This figure represented a 42.7% growth compared to 2022.
“[Automakers] are selling 1.5 million vehicles in an environment where inflation is at 4.5% and interest rates have risen to 10.5%. This highlights the industry’s resilience,” Rodrigo Centeno, CEO of Nissan México, told reporters in January.
According to the online publication Latin Times, Nissan is “studying” the possibility of leaving Mexico if Trump goes through with his threats of imposing a 25% tariff on Mexican goods as the tax would pose a significant challenge to Nissan’s profitability.
The auto company has three plants in Mexico — two in the state of Aguascalientes and one in the state of Morelos — from which it exports about 320,000 vehicles to the U.S. each year.
If tariffs are implemented, it could dramatically impact Nissan’s profitability, Uchida said in reference to Trump’s threats of implementing new tariffs on Mexico’s steel and aluminum exports.
“If high tariffs are imposed, we must be prepared to adapt, and moving production elsewhere might become a necessary step,” he said.
If Nissan decides to leave Mexico, it will have to identify alternative production sites that can accommodate its manufacturing needs while maintaining cost efficiency.
According to the magazine Merca2.0, potential destinations could include the United States, where the company already operates manufacturing facilities in Smyrna, Tennessee, and Canton, Mississippi. Other possibilities include expanding operations in Asia or investing in European plants to offset potential losses from the U.S. market.
Uchida made these comments while presenting the company’s latest financial results. He also provided an update on Nissan’s restructuring plan.
The CEO said the company will reduce global production by 20% — primarily in China where the domestic competition has gained ground — and eliminate 2,500 jobs this year. The layoffs follow the dismissal of 9,000 employees at the end of last year.
Nissan México acknowledged the volatility of the situation, saying they will have to be ready for any eventuality.
“A whole new scenario is unfolding and we have to be flexible in our response,” Nissan México told El Financiero.
Nissan sold 20,279 vehicles in Mexico in January, a 1.5% increase over January 2024.
With reports from El Universal, El Financiero, Merca2.0, Latin Times and Mexico Business News
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