Automaker plans new models, explores partnership with China’s Dongfeng while calling for stronger protection of local manufacturing
For Christian Meunier, CEO of Nissan Americas, raising import tariffs to protect local industry—as seen in the United States—is an irreversible trend worldwide. As a result, while the automaker prepares to launch five imported cars in Brazil over the next 18 months to accelerate its electrified-vehicle offering, it expects to decide within three to four months which model will be its first electrified vehicle produced in Brazil. The plans also include discussions with Dongfeng Motor Corporation, Nissan’s partner in China, regarding a potential agreement to share production capacity at Nissan’s plant in Resende, Rio de Janeiro state.
Considering projects with Dongfeng in Brazil does not mean Meunier supports the easy entry of Chinese automakers into the Brazilian market. On the contrary, he strongly criticizes vehicles produced in China that, according to him, enter the country at low prices “thanks to dumping practices.” “Many subsidies are not reflected in vehicle prices,” he said. The executive argues that the Brazilian government should protect the domestic automotive industry to avoid what he described as a potential “collapse” of the sector.
“The local industry needs greater support than imports because Brazil is not a low-cost country,” Meunier told Valor. In his view, raising import tariffs on hybrid and electric vehicles to 35% beginning in July will not be enough.
He noted that Mexico is preparing to raise tariffs to 50% and pointed to similar protectionist measures in Europe and Canada. In the United States, tariffs on Chinese-made vehicles are 100%. According to Meunier, however, the main barrier is not the tariff itself but rather a “national security policy” focused on the use of locally produced batteries and software.
Despite advocating stronger protection for local manufacturing, Meunier acknowledges that Chinese automakers “move quickly.” That reality requires competitors to make faster decisions, often before a detailed local production plan is in place. “There is work underway to bring a third product, an electrified model, to be assembled in Resende,” he said.
“My goal is to find a new baby for Resende,” Meunier joked, referring to Nissan’s manufacturing complex in Rio de Janeiro state, which currently produces two SUVs: the new Kicks and the Kait, launched in July and December 2025, respectively. The decision regarding the third model will be made within three or four months, he said.
However, there is no timetable yet for implementing a potential cooperation agreement with Dongfeng in Brazil. If completed, Nissan would become the fifth automaker in the country to open factory capacity to Chinese manufacturers. Renault, Stellantis, HPE Automotores, and Jaguar Land Rover have already made space available at their Brazilian facilities for production of Chinese brands or joint projects involving Geely, Leapmotor, GAC, and Omoda & Jaecoo, respectively.
“Dongfeng is our partner in China, so this is an opportunity we are exploring. Among several possibilities under consideration is working with them on a solution like this. But nothing has been decided. We will do things together, but we are not disclosing details because some points still need to be finalized,” Meunier said. Nissan is also negotiating cooperation agreements with Chinese partners in the United Kingdom.
Meanwhile, the company is preparing the arrival of imported models in Brazil. The large SUV X-Trail will be the first of the five launches announced by Meunier through the end of 2027. The vehicle, Nissan’s first hybrid model to be sold in Brazil, will also introduce to the Brazilian market a hybrid technology already used by the company globally.
Known as e-Power, the system allows a hybrid vehicle to be driven entirely by electric propulsion at all times without the need for external charging. An internal combustion engine serves only to generate electricity for the battery that powers the electric motor.
The new product launches represent an important step for Nissan, which currently holds just over 3% of Brazil’s vehicle market, as it seeks to increase market share. Production planning would follow. “We need to understand how we can bring in a new product that can also be localized and assembled in Brazil. We cannot rely solely on imports. That does not work in the long run.”
Since taking over as head of Nissan Americas in January 2025, the French executive has overseen an increase in vehicle production in the U.S. following the announcement of higher import tariffs by President Donald Trump. Within 18 months, the share of locally produced vehicles in Nissan’s U.S. sales rose from 44% to nearly 65%. According to Meunier, the target is to reach 80% by the end of the decade. The expansion of local production required a reorganization of manufacturing operations in Mexico and Japan, which began supplying vehicles to Canada.
Exports from the United States to Canada, which had been disrupted after tariffs were raised to 25%, have recently started to recover. “Volumes are still small because margins remain under pressure. But we need the product. We do not want to lose customers in Canada who need the large vehicles produced in the United States,” he said.
Living with higher tariffs does not mean conflict with the U.S. government, according to Meunier. “We do not need to fight the government. We are a large company. We have to work with what we have and with what the government is telling us to do. In Brazil, we have to do the same.”
According to the executive, the business community has already realized that tariffs are here to stay, regardless of changes in government. “When you have tariffs of 25% or even 15%, it becomes very difficult to remove them when governments need the revenue. The Democrats did not eliminate the tariffs introduced during Trump’s first administration,” he noted.
Asked how industrial protection policies might evolve after Brazil’s next presidential election and amid relations with China, Meunier said: “I think what matters for the Brazilian people is preserving jobs and maintaining a strong industrial base, regardless of whether the right or the left wins.” In his view, domestic vehicle production will remain “a key success factor in the United States, Mexico, and Latin America” over the next decade.
Nissan’s Brazilian operation, which is now preparing to expand its lineup with new models, emerged unscathed from the company’s recent global restructuring, which included layoffs and factory closures, including in Mexico and Argentina. The restructuring plan was primarily focused on reducing costs.
*By Marli Olmos — São Paulo
Source: Valor International
https://valorinternational.globo.com/
