Nissan is reviving its Xterra SUV as part of its comeback strategy, while putting the brakes on plans to build a new EV in the U.S. amid sector headwinds.
The details: The Xterra, discontinued more than a decade ago due to stricter emissions standards, will return in 2028 as a V6-powered hybrid that will play a central role in aligning Nissan’s Canton, Mississippi, plant with market demand.
The new Xterra will share its platform, hybrid powertrain, and parts with the mid-sized Frontier pickup, Pathfinder SUV, and Infiniti QX60.
Nissan is also weighing an Infiniti-branded version of the Xterra and could shift production of the full-size Armada and Infiniti QX80 SUVs to Canton, a facility originally slated to build a new EV.
What they’re saying: “The dealers are super excited about it because it’s going to be a great example of Nissan coming back,” Christian Meunier, chairman of Nissan Americas, said in an interview Tuesday, adding that it will “bring scale back to the plant and get the costs at the right level,” (via Bloomberg).
Why it matters: The Xterra taps into nostalgia and a rugged, adventurous brand identity that could help Nissan regain market share in a competitive segment while giving dealers a compelling product story to pitch.
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Between the lines: Nissan’s decision to shelve EV production plans in Canton reflects a broader recalibration of its electric strategy amid softening demand and shifting policy dynamics.
Imports of the all-electric Leaf from Japan have already been curtailed by tariffs.
The automaker is exploring other U.S. EV production options, potentially including partnerships to share risk.
“With the market being very uncertain about EVs, I think it’s the right thing to do,” said Meunier, discussing the changes.
Bottom line: Nissan is betting that reviving a proven nameplate like the Xterra —blended with hybrid power—will deliver volume and profitability now, even as it reassesses its EV future. The move underscores a wider industry pivot: hybrids and familiar models are the bridge strategy while automakers ride out an uncertain EV transition.
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