US President Donald Trump is going to introduce 25 percent duties on products imported from Mexico and Canada. The decision that he delayed for a month will most of all hit the financial disaster Nissan. In Mexico, the Japanese manufacturer collects one of his most affordable models – the Sentra sedan and the Kicks crossover. They will be uninteresting in the target audience if they grow strongly in price.
Serious problems tariffs for importing cars from Mexico and Canada will also turn into other Japanese manufacturers – Toyota and Honda. The US market for them is one of the key. However, both companies can afford financial losses, which cannot be said about Nissan.
Almost 27 percent of the Nissan cars for the American market are assembled in Mexico. Honda, for comparison, carries 13 percent of cars sold in the United States, and Toyota is only eight percent.
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Moreover, there Nissan produces compact cars of the mass segment for consumers who cannot easily “digest” a sharp increase in value. The Nissan position will aggravate if he does not find another sales market for Mexican machines or will not transfer production, analysts say.
Nissan is experiencing a deep crisis and negotiating with Honda about the merger, with which not everything is smooth either. Honda is not sure of the potential of Nissan as an equal partner and wants to make it a subsidiary.
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