Nissan has halted production of three models for Canada

TOKYO: Nissan Motor has suspended production of three vehicle models for Canada at its Tennessee and Mississippi plants amid mutual tariffs imposed by the U.S. and Canada on auto exports, the Nikkei reported on Wednesday.

The production halt, which began in May, affects the Pathfinder and Murano SUVs made in Tennessee and the Frontier pickup trucks produced in Mississippi, the report said.

Nissan was not immediately able to comment on the report, a spokesperson said.

The Trump administration imposed 25% additional tariffs on auto imports in April, prompting Canada to implement retaliatory tariffs.

Mazda Motor also halted Canada-bound production at its Alabama plant while boosting production for the U.S. market, the company said in May.

While Canada is a relatively small market for Nissan, a suspension of exports would underscore the difficulty facing global automakers from the tariffs.

The levies have also added to a deepening crisis at Nissan, which has been badly hit by deteriorating sales and an ageing vehicle lineup.

It reported a $4.5 billion net loss in the financial year that ended in March and has declined to disclose a forecast for the current financial year, when it also faces some 700 billion yen ($4.8 billion) in debt coming due.

Its debt ratings have been cut to "junk" by all three major credit-rating firms.

Reuters reported last month that the automaker has asked some suppliers to allow it to delay payments to free up short-term funds, in a sign of its scramble to boost cash.

Nissan does not have factories in Canada.

In the last financial year it sold around 104,000 vehicles there, less than half of what it sold in Mexico and a little more than 10% of what it sold in the United States.

Overall, Canada accounted for just 3% of Nissan's global sales in the last financial year.