Nissan eyes increasing U.S. production as new Rogue hybrid launches

Nissan Motor is looking to increase its U.S. production as it launches the 2027 Rogue crossover, including with a new hybrid model that the company views as a crucial offering for American consumers.

“We’re now maxing out the production capacity in the U.S.,” Christian Meunier, chairman of Nissan Americas, told CNBC. “The next step is going to be three shifts, and I’m pretty optimistic that with the launch of the new Rogue that is happening in the next couple months, we’ll be able to do that pretty quickly with the launch of the hybrid.”

The Japanese automaker currently produces the Rogue alongside other Nissan and Infiniti crossovers at a 6 million-square-foot assembly plant on two production shifts in Smyrna, Tennessee. It also has another large manufacturing plant producing the Nissan Altima sedan and Frontier midsize pickup truck in Canton, Mississippi.

Additional production at assembly plants typically means hundreds, if not thousands, of new jobs. Nissan’s moves come as the Trump administration has been focused on increasing employment and domestic production in the U.S. auto industry.

U.S. manufacturing of the hybrid is expected to start next year after the spring production launch of the 2027 Rogue with a traditional gas engine at the Tennessee plant.

In the meantime, Meunier said Nissan plans to import the vehicles from Japan as a way to get them to market more quickly to lift sales and help with an ongoing global turnaround plan for the company.

Meunier said if Nissan can add a third shift to each of its assembly plants, it would boost the automaker’s U.S. production to roughly 1 million units annually, up from nearly 487,000 in 2025.

Nissan has a target to produce 80% of the vehicles it sells in the U.S. domestically by 2030, but the company has no plans for a new plant as of now.

“I think we’re very well equipped to succeed without major investment and a new factory and everything else. Maybe after 2030,” he said. “Over the next four or five years, we’ll see.”

Nissan on Monday officially revealed the 2027 Rogue with its new “e-Power” technology for the U.S., which is the first hybrid of its kind for the American market.

The “e-Power” system is called a series hybrid.

It uses the engine as a generator to power the vehicle’s electric motors that then propel the vehicle. It operates like emerging extended-range electric vehicles, or EREVs, but has a smaller battery and doesn’t require a plug. It also does not use the engine to power the wheels, just electric motors.

Meunier said the Rogue hybrid and resurrecting the Xterra off-road SUV were his top vehicle priorities when he rejoined Nissan in January 2025 after four and a half years with Jeep. That included pulling ahead the Rogue hybrid twice for the U.S.

The Rogue is a sales leader for the company in the U.S. It competes in the highly competitive small crossover segment against the Toyota RAV4 and Honda CR-V, which have the best-selling hybrid options in that category.

“The hybrid power that we’re launching on Rogue is going to really be the boost to our performance,” Meunier said. “It’s been quite remarkable to be able to grow without having a hybrid in the U.S. because the hybrids are obviously becoming more and more popular.”

Meunier said Nissan plans to position the Rogue e-Power squarely against the Toyota RAV4. He said that may include an unconventional sales option to allow potential customers to test drive both vehicles at Nissan dealerships, which wouldn’t typically have a Toyota available.

The focus on the Rogue hybrid comes after Nissan and other automakers lost billions of dollars on all-electric vehicles amid a pullback in regulatory support as well as lackluster consumer demand.

Nissan has said the e-Power is a better solution than EVs or even traditional hybrids for U.S. consumers, especially amid inflated fuel prices due to the Iran war.

“It’s going to make people look at Nissan with different eyes,” Meunier said. “A lot of customers that didn’t even consider us until the hybrid comes to market.”

Nissan’s renewed focus on the U.S. comes amid a global turnaround plan.

Under the strategy, the Japanese automaker intends to streamline its automobile lineup by getting rid of low-performing models and increasing its use of technologies such as artificial intelligence.

The plan includes the company targeting 1 million vehicle sales for its Nissan brand in both the U.S. and China by the 2030 financial year and growing its annual sales volume in Japan to 550,000 cars by that time.

For the U.S., Meunier said he is satisfied with the progress Nissan has made since he returned to the automaker last year.

After several years of struggling sales, Nissan’s U.S. sales through the first half of the year were up roughly 10% compared with Cox Automotive reporting a roughly 3% decline for the broader industry during that time.

“I think the next few months are going to be pretty good. Pretty tough, but pretty good,” Meunier said. “We’re going to have a strong close of the calendar year in December.”