Japanese automaker Nissan Motor has decided to freeze plans to produce battery electric vehicles (BEVs) in the US, according to reports citing a source close to the company. The decision reflects slowing BEV sales in the country and the discontinuation of tax incentives at the end of September, introduced by the previous Biden-led administration under the Inflation Reduction Act (IRA). Last month, Nissan was forced to halt production of the Ariya BEV for the US market in Japan due to weak demand.
Nissan was planning to launch production of a new battery-powered SUV at its Canton plant in Mississippi in 2028, but this plan now looks to have been shelved. Separate reports suggested that Nissan has already instructed key suppliers to suspend development of components related to this project.
To help fill the gap, sources have suggested that the automaker is considering bringing back its discontinued Nissan Xterra SUV model, with production of a new hybrid Xterra scheduled to begin at the Canton facility in 2028.
Nissan had previously discontinued production of its Leaf battery-powered sedan at its Smyrna plant, in the US state of Tennessee, with the automaker scheduled to begin selling the latest UK-made version of the model in the fourth quarter of 2025. Earlier this month Nissan North America began recalling over 19,000 Leaf models in the US due to a potential fire risk, related to the rapid charging system.
