Nissan Motor Co., Ltd. NSANY has temporarily halted production of three vehicle models in the United States destined for the Canadian market due to escalating trade tensions between the two countries, per Reuters. The Japanese automaker stopped assembling the Pathfinder and Murano SUVs in Tennessee and the Frontier pickup in Mississippi for Canadian export. Although Nissan did not disclose the exact timing or expected duration of the suspension, it described the move as temporary.
The production pause, first reported by Japan’s Nikkei, comes in response to a tariff dispute triggered by the Trump administration’s 25% tax on auto imports introduced in April. Canada responded with its tariffs on American-made vehicles. The trade restrictions disrupted cross-border vehicle shipments and prompted manufacturers like Nissan and Mazda to adjust their production strategies.
Nissan confirmed that the affected models had previously been built in the United States and exported to Canada, but the new tariffs have made this economically unviable for now. As a result, production for the Canadian market has been put on hold indefinitely. Similarly, Mazda ceased production for Canada at its Alabama plant in May and shifted its focus to the U.S. market.
Most of Nissan’s Canadian sales, about 80%, come from vehicles produced in Mexico and Japan, such as the Versa, Sentra and Rogue. The company sold approximately 104,000 vehicles in Canada last fiscal year, which represents just 3% of its global volume.
It remains uncertain whether future U.S.-Canada trade talks will ease the tariff situation or if other automakers will take similar steps. The impact on Canadian dealers and vehicle availability is still unclear.
Nissan is facing broader financial stress. Amid declining sales and an aging lineup, the company has reportedly asked some suppliers to postpone payments to help improve cash flow. Though Canada represents a relatively small portion of Nissan’s global business, the disruption highlights the deeper financial and operational challenges it faces. The automaker reported a net loss of $4.5 billion in the fiscal year ending March and is dealing with nearly $4.8 billion in debt due this year.
Nissan’s Zacks Rank & Key Picks
NSANY carries a Zacks Rank #4 (Sell) at present.
Some better-ranked stocks in the auto space are Strattec Security Corporation STRT, Aisin Corporation ASEKY and Westport Fuel Systems Inc. WPRT. While STRT and ASEKY sport a Zacks Rank #1 (Strong Buy) each at present, WPRT carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for STRT’s fiscal 2025 sales and earnings implies year-over-year growth of 3.49% and 8.11%, respectively. EPS estimates for fiscal 2025 and 2026 have improved 73 cents and 91 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for ASEKY’s fiscal 2026 sales and earnings implies year-over-year growth of 6.3% and 62.22%, respectively. EPS estimates for fiscal 2026 and 2027 have improved 34 cents and 47 cents, respectively, in the past 60 days.
The Zacks Consensus Estimate for WPRT’s 2025 earnings implies year-over-year growth of 40.93%. EPS estimates for 2025 and 2026 have improved 44 cents and 23 cents, respectively, in the past 60 days.
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Nissan Motor Co. (NSANY): Free Stock Analysis Report Westport Fuel Systems Inc. (WPRT): Free Stock Analysis Report Strattec Security Corporation (STRT): Free Stock Analysis Report Aisin Seiki Co. Ltd. Unsponsored ADR (ASEKY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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