Nissan’s Decision To Pause Electric Sedan Plans Could Be Its Most Important

Nissan has reportedly halted production plans for US-built electric vehicles at its Canton, Mississippi plant, reports Automotive News. In a memo sent to suppliers dated May 17, Nissan says it has adapted its “development schedule” for future battery-powered sedans to make them more competitive. The memo reads, “Please stop all development activities related to [the electric sedans] until further notice.”

The automaker planned to start producing its electric sedans in June 2026. However, production has been delayed, with assembly pushed back to November 2026. It is unclear when the Nissan electric sedans will be produced, but the automaker is expected to update suppliers in June. An unnamed supplier told the publication that they expect Nissan to introduce a new plan in six to eight months. Nissan will reportedly swap production of the electric sedans with the planned midsize electric crossovers, likely in response to market demand.

Nissan’s Electrification Strategy Will Mirror Customer Needs

Like several automakers, Nissan is rethinking its electric strategy to cater to present and future customer needs. Nissan Americas Chairperson Jeremie Papin told Automotive News that the automaker is being “pragmatic and reactive” when it comes to EVs. “What matters is making sure that we launch the vehicles that the customer wants at the time the customer wants it,” he said.

Add CarBuzz to your Google News feed.

Once committed to battery-electric vehicles, General Motors has had to backtrack on its initial plan and intends to introduce plug-in hybrids by 2027. Mercedes-Benz has also abandoned its EV ambitions for a more realistic plan that favors hybrids and PHEVs. Land Rover and Kia have announced similar adjustments to their EV plans.

New Compact Electric Crossover Is Planned

But this doesn’t mean that Nissan is abandoning its battery-electric master plan. According to the memo, Nissan plans to add another electric vehicle to the production roster in Canton. The vehicle, code-named PZ1L, will most likely arrive as a small crossover. This makes a lot of sense, as this is a hugely popular segment with American buyers, and adding an affordable electric option will put Nissan in a good position.

Related

OFFICIAL: Nissan And Honda Exploring EV And Technology Partnership

Honda and Nissan have begun exploring a collaborative effort to produce more affordable electric vehicles.

A supplier said these new electric vehicles will share components to reduce costs. This, and the fact that they’re built in the United States, will ensure that Nissan can price its vehicles competitively. Nissan also plans to adopt Tesla-style Gigacasting production methods to keep costs to a minimum. But they need to be cars that Americans want to buy. “Trying to find just the right mix of EVs and timing their arrivals to hit at just the right time is crucial to Nissan’s success,” said Sam Fiorani, Vice President at AutoForecast Solutions. “This could be Nissan’s most important decision in its history.”

Source: Automotive News