Nissan Drops Mississippi EV Plans, Revives Xterra SUV

Nissan is shifting its U.S. strategy away from EV production in Mississippi, pivoting toward hybrids and rugged SUVs as it prepares to revive the Xterra.

The move reflects changing market demand and a broader industry trend toward diversified powertrains rather than an all-in EV approach.

Nissan cancels EV plans in Mississippi to refocus lineup

According to Ford Authority, citing Automotive News, Nissan has informed suppliers it will no longer produce electric vehicles at its Mississippi plant, which currently builds the Altima and Frontier. Instead, the facility will support a new lineup of five body-on-frame models as part of a revised product strategy.

The decision is aimed at aligning production with current market conditions and customer demand, particularly as automakers balance EV investments with continued interest in hybrids and traditional SUVs.

The shift mirrors broader industry adjustments, including moves by Ford Motor Company to diversify its powertrain mix and delay certain EV-focused initiatives.

Xterra revival anchors Nissan’s new product direction

At the center of Nissan’s updated strategy is the return of the Nissan Xterra, expected to launch in 2028 as a rugged, off-road-focused model targeting a sub-$40,000 starting price.

The new Xterra will feature body-on-frame construction and a V6 hybrid powertrain, sharing components with models like the Frontier pickup and Pathfinder SUV. It is being positioned as a competitor to vehicles such as the Ford Bronco, with an emphasis on customization and off-road capability.

Early design teasers point to a bold exterior with distinctive lighting elements and a more aggressive stance. The SUV is also expected to include features like a two-speed transfer case, reinforcing its focus on durability and performance in demanding conditions.

As Nissan recalibrates its strategy, the pivot toward hybrids and utility vehicles suggests a more flexible approach to electrification, balancing near-term demand with longer-term EV ambitions.

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