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Nissan Cancels Plan to Build Electric SUVs at Mississippi Plant
Nissan said the shift follows weaker U.S. EV demand and a broader effort to conserve cash, after a $500 million investment announced in 2022.
On Thursday, April 30, Nissan Motor announced the cancellation of electric vehicle production plans at its Canton, Mississippi, plant, shifting the 4.7-million-square-foot facility toward gasoline and hybrid models.
Sluggish U.S. demand and the Trump administration's elimination of federal tax credits forced the company to abandon its $500 million EV investment announced in 2022, as Nissan seeks to align production with market conditions.
The facility will now manufacture internal combustion engine and hybrid vehicles, including a new body-on-frame Xterra SUV arriving by 2028. "Canton does have a future that will include diverse powertrains, but it will not include EVs," said Ashli Bobo, a spokesperson for the company's U.S. operations.
Lloryn Love-Carter, senior manager of corporate communications for Nissan in the United States and Canada, confirmed the decision will not impact other vehicle production at Canton, which continues building the Altima and Frontier.
Major manufacturers, including Ford Motor Company and General Motors, are similarly scaling back EV programs amid evolving U.S. demand, though Nissan reports strong EV sales continue in Asia and Europe.