April 3 (Reuters) - Nissan Motor ( NSANF ) said on
Thursday it will not take new orders from the U.S. for two
Mexican-built Infiniti SUVs, following auto tariffs levied by
U.S. President Donald Trump, in a drastic scale-back of its
operations at a joint venture plant.
Nissan ( NSANF ) also said it will now maintain two shifts of
production of the Rogue SUV at its Smyrna, Tennessee, plant
after announcing in January it would end one of the two shifts
this month.
The Japanese automaker will not accept any additional orders
of the Infiniti QX50 and QX55 SUVs for the U.S. market produced
at the COMPAS plant it has run together with Mercedes-Benz
in Mexico. Nissan ( NSANF ) said production is expected to
continue for those models sold in other markets.
It was not immediately clear how much of the production is
sold in other markets. The two Infiniti models have only been
exported from Mexico to the U.S., according to data from
Mexico's national statistics agency.
A Japan-based Nissan ( NSANF ) spokesperson said on Friday the models
do go to other markets such as the Middle East and Canada, but
could not immediately provide more details.
Trump's 25% global car and truck tariffs took effect on
Thursday.
Nissan ( NSANF ) has been struggling in the U.S. due to an ageing
line-up and a lack of hybrid models. It is particularly exposed
to the new tariffs as it exports the biggest number of cars from
Mexico to the U.S. of any Japanese automaker.
Nissan's ( NSANF ) troubles led it to slash its profit forecast three
times in the financial year just ended and saw its debt
downgraded to "junk" status.
Its new chief executive, 46-year-old Ivan Espinosa, a
Mexican national who previously was its planning boss, has
pledged to drastically cut the time the automaker needs to
develop new cars.
Mercedes-Benz manufactures the GLB SUV at the COMPAS plant.
(Reporting by David Shepardson and Daniel Leussink; Editing by
Chris Reese and Muralikumar Anantharaman)