Nissan Slashes Production of Rogue and Frontier to Reduce Inventory

Reduced Production for Popular Models

In an effort to manage its inventory, Nissan has announced a reduction in production for its popular Rogue and Frontier models. According to an email sent to dealers, approximately 40,000 units of these models will be produced over the next two months.

Inventory Challenges

Nissan has been facing inventory challenges, with dealership inventory dropping from 106 days in December to 83 days in August. The Rogue accounted for 31% of Nissan’s total US sales in the first half of the year, and combined with the Frontier, these models made up 40% of the brand’s sales.

Past Production Cuts

This is not the first time Nissan has reduced production to address inventory concerns. Earlier this year, the automaker cut US output by 6% in the first quarter, with the Rogue accounting for more than half of the reduction.

Production Details

The Rogue is currently manufactured at Nissan’s plant in Smyrna, Tennessee, while the Frontier is produced at the Canton site in Mississippi. The Rogue’s production line will operate for four days per week instead of five until the end of October.

Dealer Concerns

Despite these production cuts, dealerships are still concerned about profitability. Dealer profitability is at its lowest level in nearly 15 years, and approximately 38% of Nissan’s dealers in the US are currently losing money.