Nissan’s ode to the ’90s: 2026 Z Hermitage Edition
Nissan’s ode to the ’90s: 2026 Z Hermitage Edition
- Nissan America is positioning its Tennessee operations to lead the recovery after suffering significant financial losses last fiscal year.
- The automaker’s U.S. market share increased slightly by tailoring production to specific dealer orders rather than mass production.
- Nissan plans to introduce e-Power hybrid technology to the U.S. market starting with imported Rogue models in 2026.
- The company aims to produce next-generation e-Power vehicles and components at its Tennessee plant starting in 2027.
After a difficult year, Nissan America is counting on Tennessee for its recovery in 2026, Chairman Christian Meunier said, adding that Tennessee is critical as the automaker seeks to regain market share.
The company’s goal is “to make Tennessee proud of us,” Meunier told The Tennessean, a member of the USA TODAY Network.
When Meunier took over as chairman in January, the company was in the midst of a dismal operating loss of 215.9 billion yen ($1.39 billion) for the 2024-25 fiscal year.
Currently, he focuses on business fundamentals.
“We have to start selling cars, make money, take care of customers and forget about the rest,” Meunier said. “The rest doesn’t matter. Cut the bureaucracy, cut the things that don’t add value.”
this year, Nissan’s U.S. market share has edged up from 4% to 5%, which Meunier attributes to a focus on adjusting production to dealer demand rather than relying on mass production.
“We achieved this by aligning our goals with our dealers, simplifying investments where we make an impact, and building the right car, in the right place, at the right time,” Meunier said. “Instead of us building all the cars and shipping them to dealers, we work with dealers to figure out what cars they need.”
Meunier said dealers are currently “pre-claiming” vehicles from Nissan. This means placing an order in advance, specifying the exact model, color and trim you plan to sell. Six to eight months ago, only about 30% of Nissan’s production was pre-billed through dealers. Now, that number has doubled to 60%, allowing the company to better understand demand before cars reach the lot.
“Obviously, this is a big country between New York, Los Angeles and Dallas,” Meunier said. “These are not exactly the same markets.”
These markets favor leasing, buying and hybrid respectively, he said. “We need to respond to the needs of different markets, so I think partnering with dealers makes a lot of sense.”
With tariffs hampering overseas exports, the company turned to factories in Tennessee and Mississippi that produce the Rogue, Pathfinder, and Frontier.
“So one of the first things we decided to do when the tariffs went into effect was to focus on products that could be made in the United States,” Meunier said.
From there, the company maximized production of those vehicles.
“It’s working well and we’re putting more effort into these cars in terms of advertising and supporting incentives and offers in the market. It’s growing and the profits are good,” Meunier said.
According to Nissan, from July to September, sales of the Rogue, Pathfinder and Frontier increased by 8.9%, 33.2% and 19.2%, respectively, compared to the same period last year.
When will Nissan bring hybrid cars to the US?
Meunier also said that after recent gains in locally produced cars, the company is taking steps to bring hybrid vehicles to market next year. Until now, Nissan has lagged behind in domestic sales.
“It’s okay to be late as long as you bring something great,” Meunier said.
The company plans to bring hybrid technology to the U.S. with the e-Power Rogue in 2026. The hybrid system was first introduced in the Japanese market in 2016, but the automaker has yet to introduce the technology in North America.
Unlike other hybrids, where both the gas engine and battery directly contribute to the vehicle’s acceleration, the Nissan e-Power System’s gas engine only generates electricity and is “100% motor-driven,” according to the company’s website.
The first wave of hybrid cars will be imported from Japan next year. But Meunier said he wants to produce about 300,000 “next generation” e-Power rogues in Smyrna starting in 2027.
Additionally, the company plans to renovate its Dechard engine plant to localize e-Power in the state.
“If we could do that, we would be in a much better place,” Meunier said.
But Meunier said converting a gas engine plant into a hybrid plant is no easy task.
“We are working on localizing e-Power, but no decisions have been made due to the complexity across the supply chain,” Meunier said. “I’m committed to Japan and I know the state of Tennessee supports this and will help us get there.”
Meunier said he met with Senator Marcia Blackburn last week to discuss speeding up the e-Power localization process.
Sen. Blackburn’s office did not respond to a request for comment.
