Nissan Motor will halt plans to manufacture electric vehicles at its Mississippi facility, the Japanese automaker announced Wednesday, as slowing demand and the elimination of federal tax incentives reshape its U.S. strategy.
The company had intended to begin producing two electric sport utility vehicles at its Canton plant in late 2028 or early 2029. Those plans are now suspended indefinitely following President Donald Trump’s decision to end the ¥1.1 trillion ($7,500) federal EV tax credit on September 30.
Nissan spokesman Brian Brockman said the company will instead concentrate on other projects that better align with U.S. consumer preferences. The automaker confirmed it plans to revive the Xterra nameplate as a V6 hybrid model at the Canton facility by 2028, according to Christian Meunier, chairman of Nissan Americas.
The reversal reflects broader struggles for the financially strained manufacturer, which is exploring a potential merger with Honda while cutting 9,000 jobs globally. Nissan has already canceled plans for two electric sedans and discontinued the Ariya electric SUV for the 2026 U.S. model year.
Electric vehicles accounted for approximately 8% of U.S. new car sales in 2024. Industry analysts anticipate that share will decline following the subsidy’s expiration, prompting automakers to prioritize hybrid models over battery-electric vehicles.
