Nissan Cancels Plans For Subcompact Electric Crossover

Nissan has reportedly decided to cancel a subcompact electric crossover project for the United States.

Codenamed PZ1L, the crossover was planned to slot between the Leaf and the Rogue in terms of size. The project is still expected to go ahead overseas, with production slotted for Nissan’s Sunderland plant in England, the model is no longer expected to be sold in America.

This is the latest in a series of Nissan projects that have been either delayed or canceled. Most recently, the automaker postponed plans for two electric sedans that were intended for production in Canton, Mississippi.

The project was initially part of a $500 million investment in Canton, which included plans for five Nissan and Infiniti EV models. However, production plans for next-generation EVs in the U.S. were paused last summer, with Nissan citing a need to "enhance product competitiveness."

According to Auto News, Nissan plans to focus on two larger electric crossovers that will still be built in Canton. The decision to cancel the PZ1L’s U.S. production appears to be driven in part by the slower-than-expected adoption of electric vehicles domestically.

Additionally, the return of President Donald Trump has introduced uncertainty for the EV industry. Trump has vowed to dismantle pro-EV policies, including plans to end the Green New Deal and revoke EV incentives like the $7,500 federal tax credit.

Nissan is also doubling down on its strategy to focus on models that align more closely with consumer preferences in the U.S., where SUVs and crossovers dominate sales charts. Nissan needs to 3x its profits as a prerequisite to merging with Honda.

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