China is basically the auto industry boogeyman nowadays, making constant headlines and forcing legacy carmakers to adapt in order to stay competitive. Many would argue that Chinese brands must be kept out of the US market at all costs, having already seen the effects of their unchecked expansion across the Atlantic.
But others seem to think their eventual entry is inevitable on a long-enough timeline, a scenario which calls for the proper steps to be taken in preparation. And this might just be the most realistic assessment of where things are headed, no matter how uncomfortable the optimists among us feel about it. Or, at least, that’s what the big boss at Nissan Americas is inclined to believe.
Nissan Is Already Gearing Up For China’s Arrival In North America
Christian MeunierNissan
As reported by Automotive News, Nissan Americas Chairman Christian Meunier expressed his concerns about Chinese competition during a briefing at the company’s Yokohama-based global headquarters earlier today. He believes China may start producing cars in Mexico within the next three years, thus avoiding the country’s 50% tariff on imported Chinese vehicles.
Given that very real possibility, Meunier wants to make sure Nissan is prepared when the time comes. “We have a very aggressive plan in Mexico, especially to get the cost down for us to be able to compete with the Chinese when they get localized,” he said. “It will happen probably in the next two to three years, so we need to be ready.”
What Could This Mean For The US?
2027 Nissan Rogue Hybrid from the front three-quarter angleNissan
Meunier also stated that vehicles from the likes of BYD and Geely might arrive in the US within five years, using Mexico or Canada as a springboard for that eventual push into the States. Call this mere speculation if you will, but Meunier’s foresight will definitely pay off in case his predictions come true. And it’s better to be safe than sorry, isn’t it?
“Many OEMs, especially in the Western world, but also in Japan, have not been aggressive enough in cost reduction,” said the Chairman. “Cost competitiveness is going to be the rule of the game in the next five years.” Interestingly enough, part of that strategy for Nissan involves selling its own Chinese-built vehicles south of the border, such as the N7 electric sedan and Frontier Pro pickup. A matter of fighting fire with fire, by the looks of it.
CarBuzz Insight – Why This Matters:
Although Christian Meunier’s comments aren’t what Uncle Sam wants to hear, they should ring some alarm bells for those who rely too heavily on lawmakers to always keep China at bay. Contingency plans ought to be put in place and acted upon when necessary, so as to be prepared for every scenario and avoid getting caught off-guard.
Because lobbying can only go so far once government policies get too unpredictable, and Trump’s willingness to let China open up shop on US soil should’ve already highlighted that. All things considered, Nissan’s approach seems like the most logical way to go in these circumstances.
Source: Automotive News
