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Nissan Scraps EV Plans at Mississippi Plant, Shifts to Hybrids

The shift reflects weaker U.S. demand linked to the end of federal EV tax credits.

Overview

  • Nissan confirmed it has canceled electric vehicle production at its Canton, Mississippi, plant and said the site will not build EVs.
  • The company will expand output of gasoline and hybrid models at Canton, including a V6-powered hybrid Xterra SUV.
  • Executives point to slower U.S. EV sales after the $7,500 federal purchase credit was removed, which reduced buyer demand and margins.
  • Nikkei first reported the plan to scrap two electric SUVs, and Nissan relayed the decision to U.S. dealers and suppliers.
  • The reversal unwinds a $500 million EV retooling plan and reshapes work for local employees and parts makers, in line with broader pullbacks as GM and Ford reassess EV rollouts.