Nissan Motor is canceling plans to make a pair of fully electric sport utility vehicles at a factory in the U.S., citing waning demand among American consumers for all-electric vehicles.
The decision, which was relayed Thursday to dealers and parts suppliers in the U.S., comes as part of a broader recalibration of its product strategy as the Japanese carmaker seeks to conserve cash. Nissan had previously frozen plans to start manufacturing electric vehicles at the plant in Canton, Mississippi, where it expects to build a V6 engine-powered hybrid version of its Xterra SUV.
¡°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.
As recently as early last year, the Yokohama-based automaker said it was on track to launch a battery electric model in Canton in 2028. That came after it pared back plans to produce four all-new EVs by then at the plant. The shift reflects sluggish U.S. sales for EVs after the administration of U.S. President Donald Trump killed tax credits for those vehicles.
Nissan¡¯s move to scrap plans for the two all-electric SUVs was first reported by Japan¡¯s Nikkei.
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