The Nissan Frontier and Rogue are the latest cars facing overstock
People are committed to not buying new trucks or SUVs right now. Inventory is starting to pile up across the nation as automakers roll back production. The Nissan Frontier and Rogue are the latest vehicles to struggle against oversupply.
The Nissan Frontier and Rogue cut inventory due to overstock
Welcome the Nissan Frontier and Rogue to the overstock party. Stellantis cut production of the Jeep Wrangler and Grand Cherokee already. Plus, General Motors had to cut production of the Chevrolet Silverado 1500 and the GMC Sierra 1500.
The Nissan Rogue and Frontier are the best-selling Nissan vehicles. As a result, they accounted for about 40% of sales during the first half of 2024. The Rogue accounts for 31% of its sales in the United States.
Nissan shared that it needs to manage inventory levels for prominent models and has faced excess inventory this year.
At the end of 2023, Nissan had a 106-day supply of vehicles. That’s 50% higher than the industry average of about 70 days. Nissan had the most inventory among its rivals.
Efforts by Nissan to reduce inventory levels include offering massive incentives. Incentives reached 12% of the average transaction price in August, which is above the industry average of 7.2%.
This helped Nissan get to an 83-day supply of vehicles. However, the Nissan Frontier and Rogue continue to struggle. The Rogue has an 89-day supply and the Frontier has an 111-day supply.
Nissan production cuts impact United States manufacturing plants in Canton, Mississippi, and Smyrna, Tennessee. Production of the Nissan Rogue in Smyrna is being reduced to four days a week through October.
The plants in Caton where the Nissan Frontier is built is being cut by one day a week through the end of March 2025. This plant is designed to manufacture 410,000 vehicles per year but is forecasted to only build 210,153 vehicles in 2025.
As people continue to resist purchasing new vehicles due to high prices and financing rates, inventory will build. Automakers are trying to balance supply and demand, which could finally lead to lower prices.
