Many automakers face some uncertainty based on future policies coming from the Trump administration. Nissan is making a few moves with this in mind. The automaker is considering delaying the production launch of EVs at its Canton, Mississippi plant and it’s also planning to axe the Infiniti QX50 and QX55 SUVs, which are built in Mexico.
Mexico Tariffs and EV Credit Cuts
Two policies influencing Nissan’s decisions include the possibility of tariffs imposed on Mexico and also the removal of the EV credit. With billions of dollars on the line, Nissan decided to discontinue two models built in Mexico and delay EV production instead of potentially throwing away millions of dollars. One of the biggest concerns around EVs right now is that President Trump will follow through on his statement to remove the EV tax credit.
That tax credit is likely a big consideration for American consumers when buying EV models. EV sales reached record levels in 2024 in part thanks to that tax credit. As such, Nissan had plans to build four new EV models at the Canton plant starting in 2027. However, the automaker now believes that the removal of the EV credit, not to mention other strict emissions standards, could destroy demand.
Nissan stated that they don’t want to be in the position of building models that there’s no demand for. Despite limiting EV production, Nissan is planning to increase production of hybrid models. Nissan’s sales are feeling the hurt from its lack of hybrid models.
Hybrid Vehicles Gaining Steam
Nissan is acutely aware of the shift toward hybrid vehicles as many consumers aren’t ready to trust EVs yet. Hybrid used cars and new cars are gaining new sales every day and several rival automakers have already capitalized on the trend. Unrelated to the EV tax credit is Trump’s threat to impose a 25% tariff on vehicles imported from Mexico and Canada on February 1st.
That threat directly led to Nissan’s decision to axe two Infiniti models made in Mexico. At least, that’s an easy assumption to make. Nissan claims the models are being axed due to slow sales, but the QX50 had a 7.9% increase in sales in 2024. On the other hand, the QX55 saw a huge decrease in sales to the tune of 31.1%.
It’s possible that Nissan will make a hybrid twin to the Rogue and put the Infiniti badge on it as a replacement for the QX models.
Nissan’s Struggles Are No Secret
The Japanese automaker was already having a difficult time before Trump took office and the company plans to cut as many as 2,000 US jobs this year, plus another 7,000 jobs globally. Nissan recently announced that it’s planning to merge with Honda to help combat the threat from rival Chinese automakers in the Asian market.
The current Nissan lineup is still quite varied and consists of several cars, crossovers, SUVs, and the Nissan Frontier truck. It also offers two EV models.
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