Nissan May Build Hybrid Powertrains in Tennessee to Dodge Tariffs

Nissan is weighing a plan to assemble hybrid powertrains for its Rogue SUV at its Tennessee operations, a move aimed at sidestepping the cost pressure created by U.S. tariffs on imported components. By localizing hybrid production, the automaker could reduce its exposure to duties that have made overseas-sourced parts more expensive.

The Rogue stands as one of Nissan’s highest-volume models in North America, which makes its powertrain sourcing a significant strategic decision. Shifting hybrid assembly to Tennessee would align with the company’s broader effort to keep more of the vehicle’s value chain inside the country.

No final decision has been announced, and the company has not confirmed a timeline or production volume for any such plan. The consideration reflects a wider trend among automakers rethinking where they build electrified components as trade policy shifts.