Nissan cancels $500M EV plan. Will produce Xterra at Canton MS plant instead

[Administrator]

Nissan is significantly shifting its North American strategy by canceling a $500 million plan to build electric vehicles at its Canton, Mississippi, assembly plant. Instead, the company is pivoting back to internal combustion and "electrified" (hybrid) truck-based vehicles.

The Nissan Xterra is a central figure in this strategic pivot. Here are the key details regarding the Xterra's return:

• Production Hub: The Xterra will be the flagship model for a new body-on-frame platform produced at the Canton, Mississippi, plant.
• Powertrain: While Nissan is moving away from "pure" EV production in the U.S., the new Xterra is described as an "electrified SUV." This aligns with Nissan’s broader push for its e-Power (hybrid) technology rather than full battery-electric systems.
• Timeline: The revived Xterra is slated to debut for the U.S. market in late 2028.
• Strategic Role: Nissan views the Xterra as a key driver to help the brand reach its goal of 1 million annual sales in North America by 2031. It is being positioned as an affordable, rugged alternative that meets current customer demand better than the previously planned EVs.
• Platform Sharing: To maximize cost-efficiency, the Xterra will share its underpinnings with the next-generation Frontier pickup and a future three-row SUV, along with several other upcoming models.

Broader Context: The decision comes as Nissan scales back its EV ambitions due to "less than optimal" sales (notably, the Ariya is expected to be discontinued later this year). Nissan is joining other automakers in reconsidering the pace of the EV transition, focusing instead on rugged, gasoline, and hybrid trucks and SUVs to maintain profitability in the U.S. market.

Source: https://www.autoblog.com/news/nissan-scraps-500-million-u-s-ev-plan-shifts-back-to-gas-trucks