Nissan Motor Co. is scaling back its electric vehicle ambitions in the U.S., canceling plans to manufacture a compact EV at its Canton, Mississippi facility. The decision comes as part of the Japanese automaker’s broader restructuring that includes 9,000 job cuts globally.
The company will shift production of the compact model to its Sunderland factory in the U.K., while maintaining plans to build four other electric vehicles – two sedans and two SUVs – at the Mississippi plant starting in 2026. A Nissan North America representative said the facility will prioritize EV projects with higher production potential.
The strategic shift occurs amid declining sales of Nissan’s key models in the U.S., including the Rogue SUV, which has forced production cutbacks at American plants. The restructuring will primarily affect manufacturing operations, with over 70% of job reductions targeting factory workers and production staff.
While the recent rollback of U.S. electric vehicle targets by the Trump administration raises questions about automakers’ EV strategies, Nissan maintains its decision is independent of policy changes. However, industry analysts suggest car manufacturers may need to reassess their electric vehicle investments as the regulatory landscape evolves.