Nissan says it has halted US production of three models sold in Canada
It has halted production of Pathfinder and Murano SUVs and Frontier pickup trucks, the Japanese automaker said in a statement late on Wednesday, without saying when the suspension went into effect or how long it expected it to stay in place.
"This is a short-term and temporary measure, and we remain hopeful that ongoing discussions between the U.S. and Canadian governments will lead to a successful agreement in the near future," Nissan said in a statement.
The production halt was first reported by the Nikkei newspaper, which said the suspension started in May.
Nissan said its top-selling vehicles in Canada, such as the Versa, Sentra and Rogue, were all sourced from either Mexico or Japan, with production from those two countries accounting for 80 per cent of its Canadian sales.
Nissan assembles the Pathfinder and Murano in Tennessee and the Frontier in Mississippi.
The Trump administration imposed 25 per cent additional tariffs on auto imports in April, prompting Canada to implement retaliatory tariffs. Mazda Motor also halted Canada-bound production at its Alabama plant while boosting production for the U.S. market, the company said in May.
While Canada is a relatively small market for Nissan, the suspension underscores the difficulty facing global automakers from the tariffs. The levies have also added to a deepening crisis at Nissan, which has been badly hit by deteriorating sales and an ageing vehicle lineup.
It reported a $4.5 billion net loss in the financial year that ended in March and has declined to disclose a forecast for the current financial year, when it also faces some 700 billion yen ($4.79 billion) in debt coming due.
Its debt ratings have been cut to "junk" by all three major credit-rating firms. Reuters reported last month that the automaker has asked some suppliers to allow it to delay payments to free up short-term funds, in a sign of its scramble to boost cash.
Nissan does not have factories in Canada. In the last financial year it sold around 104,000 vehicles there, less than half of what it sold in Mexico and a little more than 10 per cent of what it sold in the United States. Overall, Canada accounted for just 3 per cent of Nissan's global sales in the last financial year.
($1 = 146.1700 yen)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
2 minutes ago
- Straits Times
Who pays for Trump's tariffs?
Sign up now: Get ST's newsletters delivered to your inbox Higher tariffs on goods from dozens of trading partners kicked in on Aug 7, ranging between 15 per cent and 41 per cent. PARIS - US President Donald Trump says the United States will reap billions of dollars from his tariff blitz, but who pays the bill? Higher tariffs on goods from dozens of trading partners kicked in on Aug 7 , ranging between 15 per cent and 41 per cent. Here is a look at the effects of Trump's tariff onslaught. Higher prices for US consumers? The tariffs are paid by US-based companies to US customs when they import goods from abroad. US consumers could see a range of products become more expensive if companies choose to raise prices to offset the higher costs of importing goods. For instance, Japanese cars face a 15 per cent tariff, while made-in-Vietnam T-shirts now have a 20 per cent duty. But companies have other options: they can absorb the higher cost, which would hit their bottom line, or they can try to negotiate lower prices with exporters. Top stories Swipe. Select. Stay informed. Singapore Liquor licences for F&B, nightlife venues extended to 4am in Boat Quay, Clarke Quay Singapore Chikungunya cases in Singapore double; authorities monitoring situation closely Singapore Student found with vape taken to hospital after behaving aggressively in school; HSA investigating Asia Cambodia, Thailand agree on Asean observers monitoring truce, but fundamental differences remain Singapore CDC and SG60 vouchers listed on e-commerce platforms will be taken down: CDCs Asia Australia's purchase of Japanese frigates signals a new era for Indo-Pacific security Singapore Jail for driver who drove over leg of special needs woman in accident on church driveway Singapore Some ageing condos in Singapore struggle with failing infrastructure, inadequate sinking funds US Federal Reserve chairman Jerome Powell estimated at the end of July that higher tariffs were beginning to be felt on certain goods. For example, the US toy company Hasbro, maker of the Monopoly board game and the owlish electronic toy Furby and which imports half of its products from China, began raising prices in May and June. Procter & Gamble, the maker of Tide laundry detergent and Pampers diapers, has projected a US$1 billion (S$1.29 billion) hit from US tariffs over the next year said it would institute limited price hikes in the United States. The tariffs are even more problematic for US economic sectors which don't have an option to switch to local suppliers, said Dr Philippe Chalmin, emeritus professor at Paris-Dauphine University. The United States imports lots of copper, a key metal in electrical machinery and wiring, which Mr Trump announced would face a 50 per cent tariff on August 1. 'Half of what the United States needs is imported from Chile, and following the announcement the price of copper on the US market rose 25 per cent compared with the global reference price,' said Dr Chalmin. In the end, however, the Trump administration backpedalled and applied the tariff only to semi-finished copper products such as pipes and wires. Loss of competitiveness The bill could also weigh on companies which depend heavily on exports, with the rising prices of their products in the United States leading to a loss of competitiveness. This is the concern for the European wine and spirits sector, which has yet to obtain an exception from US tariffs. Higher prices on Champagne or Chianti could easily push US consumers to grab a bottle of Californian wine. The impact 'will be all the harsher' since in addition to the tariffs the value of the dollar has fallen, which further increases the price of the bottles on shelves in US shops, warned Mr Gabriel Picard, president of the French Federation of Wine and Spirits Exporters. He estimated that this combined effect could result in a €1 billion (S$1.49 billion) loss for French producers. 'There will be sectoral differences and even within the same sector, it will depend on the negotiating power' between the producer, the wholesaler, and the retailer, said Mr Bruno de Moura Fernandes, head of macroeconomic research at Coface, a firm which provides insurance and financial services for exporters. However, he said that the effect will be especially significant for industries already facing difficulties remaining competitive against their American counterparts, notably in chemicals and steel sectors. Thinning margins Some companies have already announced that they will cut into their profit margins to offset the effects of US tariffs. Automakers, among the first affected by US tariffs, have already seen sales and profits hit. German auto giant Volkswagen said in July that US tariffs had cost it €1.3 billion in the first half of the year as it reported falling profit. It now forecasts a profit margin for the year of between four and five per cent, down from 5.5 to 6.5 per cent previously, amounting to billions of euros for the group. US tariffs prompted Japanese auto giant Toyota – the world's largest carmaker by sales, to cut its annual net profit forecast by 14 per cent. AFP
CNA
2 hours ago
- CNA
Tariff war: India says it will protect its agriculture sector as US implements Trump's latest levies
India's prime minister is standing firm in the face of Washington's latest tariff threats. Narendra Modi said he will not compromise on agriculture, despite US President Donald Trump's plan to hike levies on Indian goods to 50 per cent in about three weeks. Meanwhile, Mr Trump said the US is now raking in billions of dollars in revenue as he imposed 10-50 per cent tariffs on imports from dozens of countries, with some also under threat of even higher levies. Ishan Garg report from New Delhi, while Kate Fisher has developments from Washington DC.
CNA
2 hours ago
- CNA
Exclusive-Ripple to buy stablecoin platform Rail for $200 million
Ripple will buy stablecoin payments platform Rail for $200 million, the company said on Thursday, weeks after U.S. President Donald Trump signed a law that raised expectations cryptocurrency tokens are about to enter the mainstream. Ripple, a crypto company that issues the token XRP as well as its own stablecoin called RLUSD, has invested heavily in stablecoin infrastructure in recent months. The acquisition - which will close in the fourth quarter of this year pending regulatory approvals - will enable Ripple and Rail to "deliver the most comprehensive stablecoin payments solution available in the market," it said. "As regulations become more clear and the space has grown and matured, this opportunity for stablecoin payments is really ripe, and the acquisition of Rail just really solidifies our market leadership in stablecoin payments," said Monica Long, president of Ripple in an interview. Toronto-based Rail, backed by Galaxy Ventures and Accomplice, uses stablecoins to deploy cross-border payments. It says its transactions are cheaper and can clear in just hours, compared to longer settlement times for fiat payments. Rail says on its website that the company is responsible for 10 per cent of all global stablecoin-based payment activity. Trump in July signed a bill into law to create a federal regulatory regime for stablecoins, which analysts said could allow digital assets to become an everyday way to make payments and move money. Stablecoins are designed to maintain a constant value, usually a 1:1 U.S. dollar peg, and their use has exploded, notably by crypto traders moving funds between tokens. Ripple said in April that it would also buy multi-asset prime broker Hidden Road in a $1.25 billion deal, one of its largest acquisitions yet, which it said would enhance RLUSD's utility. Ripple launched RLUSD, a stablecoin pegged to the U.S. dollar, last year, as it sought to disrupt the market dominated by Tether and Circle's USDC.
