Nissan Temporarily Suspends Electric Vehicle Production to Revive One of Its Most Famous SUVs

New Details About the Revived Nissan Xterra SUV

Additional information has emerged regarding the revived Nissan Xterra SUV, approximately six weeks after the Japanese automaker confirmed the development of a new generation. The return of this rugged SUV is likely to delight long-term fans, although its revival appears to be happening at the expense of a new electric model that was planned for production in the United States.

Key Aspects of the Update

Production Plans and Market Strategies

Shortly after CEO Ivan Espinosa confirmed the revival of the Xterra at a national dealer meeting, Nissan Americas Chairman Christian Meunier confirmed plans to launch the SUV on the market in 2028. It will be equipped with a V6 hybrid powertrain and will be manufactured at the company’s plant in Canton, Mississippi.

Historical Context and Technical Expectations

More than a decade has passed since the Xterra was discontinued, and although little is known about the new model, it is expected to use a body-on-frame platform, the same foundation that will be used in the updated Frontier, as well as in the updated versions of the Pathfinder and Infiniti QX60.

Nissan Just Hit Pause On An EV To Bring Back One Of Its Most Famous SUVs

Premium Options and Market Changes

Meunier hinted that a more premium option under the Infiniti brand could also be possible. He noted that “dealers are extremely excited” about the return of the Xterra, although he acknowledged that changing market dynamics have forced Nissan to reconsider its electric vehicle plans.

Weaker demand for electric cars has led the brand to suspend a new project that was planned for the same plant in Mississippi.

Implications for Electric Models

The canceled electric vehicle would have used batteries from SK On, which has a nearby manufacturing facility, and was expected to hit the market in 2028. Meunier said that suspending plans for this model is the “right step,” adding that Nissan continues to evaluate the possibility of manufacturing electric vehicles in the United States.

Nissan Just Hit Pause On An EV To Bring Back One Of Its Most Famous SUVs

Economic Aspects and Future Prospects

However, he acknowledged that this might only make sense if Nissan can achieve significant reductions in production costs, including finding another automaker to collaborate with on electric vehicle production. This suggests that automakers are facing complex decisions regarding the balance between traditional and electric technologies, especially in conditions of fluctuating demand and economic efficiency.

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