In This Article:
Nissan Motor Co. has ditched plans to bring a subcompact electric crossover to the U.S.
The financially hamstrung automaker told suppliers that it won’t build the electric vehicle — code-named PZ1L — at its plant in Canton, Miss., sources tell Automotive News. Instead, output is expected to be consolidated at Nissan’s factory in Sunderland, England, according to AutoForecast Solutions.
Nissan spokesperson Brian Brockman said the automaker is focusing on other EV projects for the Canton plant that would better meet market needs and deliver higher volumes.
“We will continue to evaluate market opportunities for new models and make adjustments accordingly,” Brockman said.
The PZ1L, described as being sized between the Leaf hatchback and the compact Rogue crossover, was one of five Nissan and Infiniti brand electric sedans and crossovers planned to be built in Canton starting mid-decade.
But last summer, the Japanese automaker told suppliers it was pausing production plans for the next-generation EVs in Canton and putting a $500 million investment at the underutilized assembly plant on hold.
Nissan sent a memo to suppliers at the time saying it had adjusted the sedans’ “development schedule ... to enhance product competitiveness.”
Being pragmatic
EV demand in the U.S. has softened from its post-pandemic fervor fueled by the technology’s early adopters.
Like much of the industry, Nissan is taking a wait-and-see approach with its electric plans — assessing customer demand for zero-emission vehicles and potential changes to EV incentives under President Donald Trump‘s administration.
“We have an industry volume forecast that has a percentage of [hybrids], a percentage of [plug-in hybrids] and a percentage of EV,” Ponz Pandikuthira, Nissan Americas chief planning officer, told Automotive News in October. “That number is a little too dynamic for my liking at this point.”
Former Nissan Americas Chairperson Jeremie Papin said the automaker was being “pragmatic and reactive” to customer interest in EVs.
“What matters is making sure that we launch the vehicles that the customer wants, at the time the customer wants it,” Papin told Automotive News in May.
Prioritizing
The PZ1L was one of three electric utility vehicles planned for Canton.
Nissan added the model to the production mix in May, but since then its financial fortunes have worsened amid tumbling sales and profitability.