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Nissan Puts Brakes on U.S. Production Plans to Rechart Course

by | May 21, 2024

Japanese automaker Nissan halted plans to produce electric vehicles in the U.S. until further notice. The company is rethinking what it wants to do with its first set of next-generation EVs in the U.S.

Nissan Canton Vehicle Assembly Plant

Nissan halted its EV production plans as it reconsiders how many electric vehicles it will produce at its plant in Canton, Mississippi.

The move means a temporary stop on a $500 million investment in its Canton, Mississippi plant. The site was set to be the production home of several new EVs as the automaker looked to add more products to an underused plant in the U.S.

According to a May 17 memo sent to suppliers obtained by Automotive News, Nissan adjusted the “development schedule” of a pair of electric sedans “to enhance product competitiveness.”

“Please stop all development activities related to [the electric sedans] until further notice,” Nissan told suppliers in the letter.

Delayed ambition

Nissan’s made noise about adding to its U.S. lineup of battery-electric vehicles, which currently includes just the Leaf subcompact and Ariya crossover. The automaker hinted more EVs would be coming to the U.S., including the arrival of two sedans midyear 2026. However, the company’s pushed those plans back twice. They’re now expected to in the final quarter of the year.

The automaker hinted more EVs would be coming to the U.S., including the arrival of two sedans midyear 2026.

Now all of those plans are up in the air as Nissan has a rethink. Officials did tell suppliers they’d offer more insight sometime in June, Automotive News reported. Nissan’s not the only automaker revising its EV strategy; however, it may be the only one to considering a move to add another EV to its production mix.

In the memo, Automotive News reports, the company says it plans to add a fifth EV to the production mix in Canton and instead of starting with two sedans, it will likely kick off production with two crossovers instead. The fifth vehicle will likely be some form of crossover, Automotive News reported.

More Nissan Stories

Revising the Arc

In March, Nissan revealed The Arc, a business plan to cover the gap between Nissan NEXT and Nissan Ambition 2030. This transitional period will be divided into two 3-year segments designed to bolster what’s just been completed, implement new strategies and then carry those out.

In real terms, it means seven new vehicles in the U.S. and Canada, revamping 78% of its passenger car lineup, plus launching e-power and plug-in hybrid models. During that time, the company initially planned to introduce seven new vehicles in the U.S. and Canada.

The original plans called its plants in Canton as well as Smyrna, Tennessee to build new vehicles.


  1. Will Tesla be the last EV standing? EVs are the new Lemmings?

    • Not likely. The claims of falling EV sales are misleading. It’s sales growth that’s slowed…and is still on trend to reach 10% this year. At 1.6 million EVs, that’s a significant number. The only maker to experience a decline in Q1 was Tesla, and there are plenty of reasons, including increased competition and Musk’s controversial behavior.


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