Nissan's American Boss Says The Xterra SUV Is Coming Back

The new play seems to be a direct result of Nissan pressing pause on its U.S. electric vehicle production plans due to weak demand for EVs and the EPA's recent work to tear down its own environmental policies.

Christian Meunier, Nissan’s Americas chairman, confirmed to Bloomberg that the revived Xterra will use a V6 hybrid powertrain and could be joined by an Infiniti-branded twin. The new model, or models, are expected to fill a capacity gap at the Mississippi factory that was originally earmarked for a fully-electric model.

“The dealers are super excited about it because it’s going to be a great example of Nissan coming back,” Meunier said in the interview.

The original Xterra was discontinued in the U.S. in 2015, mostly due to tightening emissions standards and consumer preference for unibody-based crossovers, which ride nicer than body-on-frame SUVs derived from pickup trucks. In 2003, my family cross-shopped the Xterra with the Ford Escape, but my mom chose the Escape for exactly that reason. I wanted the Xterra, in yellow, with the huge branded roof rack.

It's expected that the Xterra will share a platform with the Frontier, along with the Pathfinder, and the Infiniti QX60. The same is expected of the V6 hybrid powertrain, which could give Nissan a direct answer to Toyota's trifecta of Tacoma, 4Runner, and Land Cruiser, all of which share a platform and Toyota's i-Force MAX hybrid powertrain—although the Tacoma and 4Runner both offer entry-level 4-cylinder engines.

As recently as just a few months ago, Nissan had planned to launch a fully electric model out of Canton by 2028 with locally sourced batteries from South Korea’s SK On. That program is now on ice, with Meunier pointing to the expiration of federal EV subsidies and the uncertain outlook for U.S. demand.

“With the market being very uncertain about EVs, I think it’s the right thing to do,” the executive said.

While Nissan still sells the Leaf EV, the automaker recently announced it would stop selling the Ariya SUV in 2026. Meunier did say that U.S.-built EVs remain possible but would require dramatic cost reductions or a partner to share the financial risk—that partner was supposed to be Honda, as part of an agreement the two Japanese automakers signed last summer, but it's unclear what's happening on that front now.

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