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Nissan has slashed its exposure to Trump’s tariffs, cutting costs by $2.3 billion in its last fiscal year, Automotive News has learned. [Gift link attached]

This marks a 61 percent decrease from the $3.8 billion in tariff costs the automaker faced at the beginning of the business year on April 1, 2025.

To achieve this reduction, Nissan boosted U.S. production and focused on selling vehicles manufactured domestically.

The company anticipates further lowering its tariff burden to $1 billion or less in the current fiscal year, which concludes next March.

Key takeaways :

- A greater proportion of U.S. sales now comes from vehicles assembled in Tennessee and Mississippi.

- Reliance on imported parts, particularly from China, has decreased.

- Imported vehicles accounted for 35 percent of Nissan brand sales in the first quarter, down from 43 percent a year earlier.

- The majority of tariff savings are attributed to higher output of U.S.-built models such as the Rogue, Pathfinder, and Frontier.

- Domestic production of U.S. sales volume increased by a third to 60 percent in fiscal 2025.

“Building where you sell eliminates many risks — tariffs, currency swings and supply chain issues,” Nissan Americas Chairman Christian Meunier said. “For our most important market, maximizing U.S. production is critical.”

Honda is considering bringing all-wheel-drive to the next generation Odyssey, which is now not expected until early 2030.

The Odyssey, which has had two midcycle updates since its last redesign in 2017, will see its run extended at least three more years, with the next-generation hybrid model now targeted for March 2030, according to a supplier memo reviewed by Automotive News.

Honda had considered temporarily dropping the minivan but decided against it to keep customers from defecting to rivals, people briefed on the plans said. 

In the minivan segment, where Honda holds strong retail share with the Odyssey, concerns about the aging models are particularly acute.

Some retailers worry the front-wheel-drive van will lose ground to the newer Toyota Sienna, which offers awd, as Honda’s model continues to age.

“Honda has been selling Odyssey forever with front-wheel drive,” a dealer said. “But some people dismiss the Odyssey because it’s not all-wheel drive.”

Honda is stretching the life cycles of several high-volume models — in some cases to more than a decade — as it takes a $15.8 billion hit in pivoting from its ambitious electric vehicle plan.

Honda is squeezing more cash from proven platforms while developing more efficient hybrid powertrains to drive future growth.

Honda, in a supplier memo reviewed by Automotive News, said it will extend production of the Odyssey, Accord and HR-V, as well as the Acura MDX and Integra. Next-generation models of all five nameplates will not arrive until the end of the decade at the earliest, according to the memo.

The Odyssey, last redesigned in 2017, will see its run extended at least three more years, with the next-generation hybrid model now targeted for March 2030. Honda had considered temporarily dropping the minivan but decided against it to keep customers from defecting to rivals, people briefed on the plans said.

The Accord could go hybrid-only after a redesign by early 2030. Production of the midsize sedan’s gasoline-only version is extended a year through March 2030, with no next generation listed in the supplier document.

The HR-V’s life cycle will stretch to a decade, with production being extended at least two years. A redesign of the subcompact crossover now is expected by early 2032.

Production of the Acura Integra compact sedan will run through March 2032 — three additional years — with no next generation disclosed.

The three-row MDX crossover is on track for a roughly 10-year life cycle before its next generation arrives by early 2031.