Report: Nissan Cancels Subcompact Electric SUV for the U.S.

Nissan spokesperson Brian Brockman told Automotive News that the company would not build the vehicle at its Canton, Mississippi factory and would instead move production to England. That said, Nissan plans to use the deep south facility to build other electric models, which will grow to include five new vehicles over the next few years.

The automaker has backed off the most aggressive of its electrification plans, citing challenging market conditions and shifting political issues. Nissan needs to be cautious to navigate the changes coming to the EV market under President Trump, and the EV market is growing crowded, making it difficult to turn a profit on such low volumes. All of that said, Nissan is in talks to merge with Honda, which could drastically change any existing plans.

While we don’t know exactly how Nissan plans to work through these challenges, analysts expect its product roadmap to include more hybrids and plug-in models. AutoForecast Solutions’ VP, Sam Fiorani, said, “It’s tough to make money on volumes that low. Too many EVs are chasing too few buyers at the moment, and Nissan’s resources would be better spent on adding hybrids to its lineup.”

[Images: Nissan]

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