According to the US Automotive News, Nissan has suspended plans to produce the first next-generation electric vehicles in the United States and shelved its plan to invest $500 million in its plant in Canton, Mississippi.
In a memo to suppliers on May 17, Nissan said it had adjusted its “development schedule” for two electric cars “to improve product competitiveness” and asked suppliers to “stop all R & D activities related to the (electric car) project until further notice,” according to the American Automotive News.
However, Nissan did not provide a new production date, saying only that it would provide suppliers with the latest news in mid-June.
“I think it will take at least six to eight months for Nissan to announce the new plan,” said one supplier, who spoke on condition of anonymity.
” Nissan had planned to start production of the electric cars in June 2026, but has postponed the plan twice so far.
The previously announced plan is to start production of new electric cars in November 2026.
J é r é mie Papin, chairman of Nissan America, said in an interview with American Automotive News last week that Nissan takes a “pragmatic and positive attitude” about consumer interest in electric cars.
“it is important to make sure that we launch the models that consumers want when they need them.
” Nissan, in a memo, Nissan revealed that it will produce more electric models at its Canton plant, increasing the number to five.
According to GlobalData, the fifth model is code-named PZ1L, or it will be a Rogue Sport-sized crossover.
At the same time, Nissan will change the production order of electric cars, producing two crossover models first, rather than sedans.
Sam Fiorani, vice president of AutoForecast Solutions, said, “trying to find the right electric vehicle portfolio and launch electric models suitable for the market at the right time is critical to Nissan’s success.
This is probably the most important decision in Nissan’s history.
” While postponing US electric car production plans, Nissan is reconsidering its electric vehicle development and procurement strategy.
According to Nissan’s medium-term business plan announced at the end of March, its future electric models will adopt “next-generation modular manufacturing”, group procurement and battery innovation technology.
Nissan’s future electric models will share parts to improve cost efficiency, according to a supplier.
“they want us to use the same tools to produce parts for all electric models,” the supplier said, while Nissan also needs time to develop product lines to adapt to shared parts.
In addition, Nissan is also waiting to see the results of the US presidential election in November, because if former US President Donald Trump is elected, his administration may abandon the Biden administration’s electric vehicle incentives.
Nissan’s lack of certainty in its electric car production plans has unnerved suppliers who need to free up resources for new projects.
“these companies, big or small, will not bid if they cannot confirm whether the new car project can be put into production,” Fiorani said.
Papin said Nissan would soon define a production plan for electric vehicles and that “a plan we will come up with is more beneficial to suppliers”.
Sharing parts for multiple electric models will bring greater economies of scale to suppliers and “reduce” business risks, Papin said.
Nissan, but for Nissan and its suppliers, the recent concern is a decline in car production at the Canton plant.
At the Canton plant, Nissan produces three models and originally planned to produce 410000 cars a year, but a few years ago, its annual production capacity was reduced to about 270000.
According to a supplier report reviewed by Automotive News, production at the plant is expected to fall 17% to 204559 vehicles in the fiscal year ending March 31, 2025.
Among them, the plant will stop production of the full-size Titan pickup truck this summer, and had planned to stop production of the Altima sedan in the second half of 2025, but has postponed the production of the Altima.
The supplier mentioned above said, “if Nissan cannot continue to produce Altima, Nissan’s supply base in the region may disappear.
Because production is so small, the company will supply Canton from other factories, and Nissan’s transportation costs will rise as well.
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