Nissan May Move Sentra Production To The US, But You’ll Pay For It

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It could take Nissan up to six months to transfer Sentra tooling from Mexico to the USA

 https://www.carscoops.com/author/bradcarscoops-com/ 

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by Brad Anderson

5 hours ago

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• Nissan sold 152,659 Sentra sedans in the US last year, accounting for 20% of its sales.
• Shifting Sentra production from Mexico would avoid tariffs but likely raise vehicle prices.
• The company recently scrapped plans for two new electric sedans intended for America.

Nissan is facing a challenging moment, having recently confirmed plans to cut 20,000 jobs, close seven factories, and reduce the number of vehicle platforms it uses. The company is also pushing to speed up development times for new models. Amid these sweeping changes, Nissan is reportedly considering moving production of its popular Sentra sedan from Mexico to the United States in an effort to improve its financial situation and avoid the 25% tariffs on imported vehicles.

Read: Nissan’s Radical Overhaul Will Slash Platforms And Speed Up Development

Production of US-bound Sentras is currently handled by Nissan’s manufacturing complex in Aguascalientes, Mexico, but Nissan knows it needs to keep its vehicles affordable. If it continues building the Sentra in Mexico, it’ll inevitably have to increase prices, as the brand is not in a position to be able to absorb the added costs.

While Nissan itself hasn’t confirmed that production is being shifted, an unnamed supplier has told Auto News it is considering it. Last year, the Sentra was a strong performer in the U.S., with 152,659 units sold, or roughly one-fifth of the brand’s total sales in the country.

Pick Your Poison: Tariffs Or Labor Costs

Shifting production to the U.S. would help Nissan avoid the tariffs, but it wouldn’t come without trade-offs. Labor costs would rise significantly, and the company may still need to adjust prices for consumers. While this could be a tough pill for buyers to swallow, it could be seen as a win for President Trump, who has long pushed for more localized manufacturing and has made regionalization a key element of his tariff policies.

If production of the Sentra is moved to the US, it would likely be shifted to an underutilized facility in Canton, Mississippi. This plant currently builds the Altima and Frontier, but has a utilization rate of just 51%. Nissan was going to build two new electric crossovers and two new electric sedans here, but recently abandoned work on the sedans and is reconsidering the schedule of the crossovers.

According to the unnamed supplier, it would take Nissan about three to six months to retool the Mississippi facility for Sentra production.

Nissan’s top brass is clearly aware of the need to keep the Sentra affordable. In discussions about the potential production move, Christian Meunier, chairman of Nissan Americas, emphasized the brand’s goal to “find a way to keep the affordability of these cars.”

Similarly, CEO Ivan Espinosa acknowledged in the company’s latest quarterly earnings report that the brand has managed to offset around 30% of the tariff impact so far, but that doesn’t mean the price pressures are gone.

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