Nissan has announced a significant change in its manufacturing strategy, opting to discontinue plans for electric vehicle production at its Canton, Mississippi facility. Instead, the automaker will concentrate on producing hybrids and traditional gasoline-powered vehicles, which includes a forthcoming body-on-frame Xterra SUV expected by 2028.
This decision comes as Nissan reassesses its approach to align more closely with current market conditions and consumer demand. The company previously aimed to sell 200,000 EVs in the U.S. by 2028 as part of its Ambition 2030 strategy, but has faced challenges, leading to a drastic 89 percent decline in American sales during the first quarter of 2026.
Manufacturers across the automotive industry are experiencing similar struggles, with companies like Ford, GM, and Volkswagen also scaling back their electric offerings. While Nissan is pivoting towards hybrids such as the upcoming Rogue e-POWER and a refreshed Pathfinder, the broader market remains challenging for electric vehicles due to factors including the recent end of the federal tax credit.