Nissan announced in a statement that it is abandoning its plan to build a $500 million (approximately RMB 3.42 billion) all-electric vehicle production facility at its Canton assembly plant in Mississippi, USA.
The automaker will shift production to conventional gasoline and hybrid vehicles at the 4.7 million square meter facility. Nissan stated, “This move is to better align with market conditions, customer needs, and Nissan’s updated strategic direction.”
As part of its “Vision 2030,” Nissan announced in 2021 that it would transform its Canton facility to produce electric vehicles and batteries for multiple Nissan and Infiniti models, with the goal of selling 200,000 electric vehicles in the United States by 2028.
However, weak U.S. electric vehicle sales and the U.S. government’s elimination of the $7,500 federal tax credit led the company to reconsider the program.
Last year, Nissan canceled the sale of the Ariya electric crossover and two electric sedans in the United States. Now, the automaker has completely abandoned its plans to expand its electric vehicle factory.
The company will convert the facility to produce internal combustion engines and hybrid vehicles, starting with a new chassis-based Xterra model, planned for release in the US market in 2028. This will be followed by the three-row Nissan Frontier and at least three other models, all built on the same platform.
Other U.S. manufacturers, including Ford and General Motors, have also canceled or scaled back their electric vehicle plans, focusing instead on hybrid or internal combustion engine vehicles.
