Nissan Motor Co. President and CEO Ivan Espinosa said it still makes sense to build cars in the U.S. despite current economic headwinds.

The statement comes as global automakers navigate volatile currency fluctuations and geopolitical friction. Maintaining a domestic manufacturing footprint allows Nissan to stabilize its supply chain and respond more quickly to North American consumer demand.

Speaking on Bloomberg Surveillance, Espinosa said the challenges posed by trade tensions and a weaker yen create complexity for international manufacturers, yet the strategic advantage of local production remains intact. "It still makes sense to build cars in the US," Espinosa said [1].

Market demand and strategic considerations continue to outweigh the drawbacks of the current economic climate. By producing vehicles within the U.S., the company can mitigate some of the risks associated with importing finished goods, a strategy that helps insulate the brand from sudden shifts in trade policy.

Espinosa has held his current leadership position for approximately one year [2]. His tenure has focused on navigating the company through a transition in the global automotive landscape, where regional production is increasingly viewed as a hedge against global instability.

The decision to prioritize U.S. assembly reflects a broader trend among Japanese automakers to localize production. This approach reduces reliance on long-distance shipping and aligns with regional economic incentives.

“"It still makes sense to build cars in the US."”

Nissan's commitment to U.S. manufacturing suggests that the company views the North American market as too critical to risk on import-heavy strategies. By prioritizing local assembly, Nissan is attempting to balance the cost benefits of a weak yen with the operational security of avoiding potential tariffs or trade barriers that could arise from escalating geopolitical tensions.