Nissan Suspends U.S. Orders for Mexico-Made Infiniti SUVs

Nissan Motor has decided to stop taking new orders for its Infiniti QX50 and QX55 SUVs produced in Mexico, citing the impact of recently imposed U.S. tariffs on imported vehicles. The company announced the move amid broader changes to its production strategy in North America, following the enforcement of a 25% global car and truck tariff introduced by President Donald Trump.

Exports from Mexico to the U.S. come to a halt

The Infiniti models in question have been manufactured at the COMPAS plant, a joint venture facility operated by Nissan and Mercedes-Benz. According to Nissan, production of the QX50 and QX55 will continue for markets outside the United States, although it remains unclear how much of the output is destined for other regions. A company spokesperson in Japan stated that the vehicles are also shipped to places like the Middle East and Canada, but further details were not disclosed.

Data from Mexico’s national statistics agency indicates that these models had previously only been exported to the U.S. The halt in orders underscores a significant strategic shift for Nissan, as the company reassesses its exposure to tariff-related risks in the U.S. market.

Production shift in Tennessee factory reversed

In a related move, Nissan announced it would maintain two production shifts at its Smyrna, Tennessee plant for the Rogue SUV. This reverses an earlier decision made in January, where one of the shifts was scheduled to end this month. The change suggests that the company is seeking to rebalance its output amid the disruption caused by the new trade rules.

The production realignment reflects the broader challenges Nissan has faced in the U.S., where the automaker has seen its lineup become outdated and its portfolio lacking hybrid alternatives—a growing concern in a rapidly shifting automotive market.

Financial pressures and leadership transition

Among Japanese automakers, Nissan is currently the most exposed to the new tariffs, as it exports more vehicles from Mexico to the United States than any of its competitors. This has contributed to a series of profit downgrades during the most recent fiscal year, with the company reducing its forecast three times and receiving a "junk" credit rating from agencies.

In response to these challenges, Ivan Espinosa, a 46-year-old executive from Mexico, has taken over as CEO. Previously serving as Nissan’s planning chief, Espinosa has pledged to “drastically cut the time the automaker needs to develop new cars.” His appointment signals a shift toward accelerating the company’s adaptation to market changes.

Mercedes-Benz continues production at COMPAS plant

Despite Nissan’s decision to pause U.S. shipments of its Infiniti SUVs, Mercedes-Benz will continue producing the GLB SUV at the same COMPAS facility. The long-term implications for the joint venture remain to be seen, especially as trade policy changes prompt automakers to reconsider their cross-border manufacturing strategies.

Nissan’s latest decisions reflect the growing complexities faced by global carmakers operating under shifting trade frameworks and evolving consumer demands in major markets like the United States.