Nissan abandons plans for electric car production in the US

Nissan is giving up producing electric vehicles (Ev) in the US in the face of slowing demand and the recent elimination of tax incentives on the purchase of zero-emission cars.

The Japanese carmaker has informed its American component suppliers that it has cancelled its planned production plan for electric cars at its plant in Canton, Mississippi, where volumes of other models will be increased instead.

Nissan's production strategy in the US, which focused on a multifaceted range of EV models, had already suffered development delays, and last year the company had given up production of a zero-emission compact model. At a press briefing last month, discussing the long-term strategic vision, the group anticipated a "more flexible" approach to investment in electrics in the US, subject to changing demand and what the regulatory framework would be.

The new strategy includes a reduction in the range and a diversification of engines, with more room for hybrid vehicles, with a view to strengthening competitiveness. In order to cope with the crisis, the new CEO Ivan Espinosa has launched a restructuring plan in 2025 that envisages cutting the global workforce by 15 per cent - or 20,000 employees - and closing seven out of 17 plants by 2027.