Even as it cuts back on plans to expand its EV line-up, Nissan says it’s bringing back the once-popular Xterra, a rugged off-road SUV it junked back in 2015. It could be joined by a new Infiniti model, both to be produced at Nissan’s underutilized plant in Canton, Mississippi. More from Headlight.News.
The 2015 Nissan Xterra marked the end of the road for the rugged SUV.
It’s been a decade since the last Nissan Xterra rolled into U.S. showrooms but in a bid to help revive demand in the critical U.S. market, the troubled Japanese automaker said the rugged SUV is set to make its return.
The announcement comes as the second-largest Japanese automaker struggles to reverse several years of deep losses and also marks a rollback of the aggressive EV plans it had previously announced. The new Xterra will take the place of an of those all-electric SUV when it goes into production at Nissan’s underutilized assembly plant in Canton, Mississippi.
A more upscale version of the Nissan off-roader reportedly will also be launched from that factory and sold through the Infiniti brand.
What’s new
First launched in 1999, Xterra went by several names in markets around the world, including the Nissan Paladin.
Rumors of Xterra’s return have been circulating for month. But confirmation reportedly came in meetings between Nissan officials and the dealers they’ve been trying to perk up after sharp declines in the brand’s sales.
“The dealers are super excited because it’s going to be a great example of Nissan coming back,” said Christian Meunier, chairman of Nissan Americas, in an interview with Bloomberg.
Plans now call for the new Xterra to be back in production sometime during the 2028 calendar year and it could be accompanied by a more upscale Infiniti package. Both will be assembled in Canton, taking the place of what was to have been an all-electric SUV.
“With the market being very uncertain about EVs, I think it’s the right thing to do,” Meunier said in an interview.
Returning in hybrid form
A Nissan e-Power engine.
Automakers, in general, have been pulling back on battery-electric vehicles, particularly with federal EV tax credits now abandoned. For its part, Nissan also decided to halt production of the midsize Ariya for 2026, though it’s moved ahead with the launch of the third-generation, 2026 Leaf.
That said, it is redoubling investments in hybrid technology, many potential EV buyers shifting their purchases to gas-electric alternatives.
Nissan officials indicated the reborn Xterra will feature a hybrid drivetrain. Specific details haven’t been revealed, though expectations are that the system will pair a V-6 with an electric drive system. It’s unclear if the new Xterra will also offer a conventional, gas-powered option, as has been the approach taken by other automakers, including Toyota, Honda and Hyundai.
More Nissan News
- First Drive: 2026 Nissan Leaf
- A Week With 2025 Nissan Murano
- Nissan Shutters its Flagship Japanese Factory
An automaker in trouble
Nissan CEO Ivan Espinosa
Nissan has faced major problems since its former CEO Carlos Ghosn was arrested for alleged financial violations six years ago. It has faced a series of management shake-ups, most recently seeing Ivan Espinosa named CEO.
If anything, he has accelerated the revival program put into motion by his predecessor, Makoto Uchida, with more than 10,000 job cuts planned and the automaker’s traditional flagship plant among factories being shuttered.
Key to the program, however, has been a new product strategy. And much of that is aimed at reviving demand in the critical U.S. market.
Bringing Xterra back will “bring scale back to the (underutilized Canton) plant and get the costs at the right level,” according to Meunier.
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