Nissan is reconsidering its electric vehicle (EV) production timeline in the US, due to potential changes in energy and trade policies, reported Bloomberg.
The company’s North American production strategy is being reconsidered in response to potential policy shifts, including the elimination of a $7,500 tax credit for EVs.
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Nissan Americas operations chief planning officer Ponz Pandikuthira indicated that the start date and output levels for EVs at the Canton, Mississippi plant are uncertain. This is largely due to President Trump and the Republican Congress’s stance on EV incentives.
Pandikuthira in an interview to Bloomberg said: “If they pull back on the $7,500 credit, we know the rate of adoption is going to slow.
“We certainly don’t want to be in a position of building models there’s no demand for.”
Earlier, the company had plans to introduce four new EV models at its factory in Mississippi, starting in 2028, with readiness for production as early as 2027.
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By GlobalDataHowever, these plans may be delayed, and production volumes could also be reduced in favour of gas-electric hybrids, including plug-in models, at their Smyrna, Tennessee plant.
Pandikuthira added: “We’re staying closely tuned to what happens with regulations. We can decide which ones to ramp up and which ones to slow down.”
In a separate move, Nissan has decided to discontinue two Infiniti models, the QX50 and QX55, by the end of this year because of low demand.
These models are currently produced at a joint venture plant in Mexico with Mercedes-Benz.
However, the firm has no plans to reduce operations at its other facilities in Mexico.
The future of the Mexican joint venture, known as Cooperation Manufacturing Plant Aguascalientes (Compas), remains uncertain beyond May 2026, when it will stop assembling a Mercedes model.
The joint venture CFO Mark Davidson wrote in an email: “Nissan and Mercedes Benz are continually reviewing and adapting to requirements as needed. We have no further comments currently.”
Amidst these changes, Nissan is reportedly planning up to 2,000 job cuts in the US this year, aiming to reduce its output by about 25%.
These measures follow a global restructuring plan announced last year to cut 9,000 jobs and reduce production capacity by 20% due to financial challenges.
Last week, Bloomberg reported that Nissan Motor plans to halt the production of its AD compact van in November this year to lower excess production capacity.
