Nissan Motor Co. is poised to revive its discontinued Xterra SUV model in the U.S. as a hybrid that could be built at its Canton, Mississippi plant, a company spokesman confirmed in an email. The factory may also produce a hybrid Frontier pickup.
The move comes as the financially troubled automaker is in the midst of a fast-track cost-cutting plan to return to profitability, which includes reducing its global manufacturing footprint. Though part of its recovery plan also calls for introducing new models globally to boost sales.
Nissan’s Canton plant is suited to build frame-based trucks and SUVs as the factory has been the automaker’s manufacturing center for those types of vehicles since it opened, Brian Brockman, a spokesman for Nissan, said in an email.
Citing comments made by Nissan Americas Chairman Christian Meunier in an interview with Bloomberg, Brockman said Meunier discussed plans to produce a family of frame-based truck and SUV models in Canton, including a new Nissan Xterra SUV and Frontier pickup.
“These would be electrified with a hybrid powertrain,” Brockman said. Bloomberg reported that the Xterra could return by 2028.
Introducing a hybrid SUV could provide a sales lift for Nissan. Competitors including Honda and Toyota have integrated hybrids into their respective lineups which has fueled the powertrain’s resurgence, Stephanie Brinley, S&P Global Mobility associate director of AutoIntelligence, said in an email.
Brinley said the top hybrid models in 2024 and carrying into 2025 included the Toyota Camry, Toyota RAV4 and Honda CR-V. These were among the top non-pickup trucks sold in the U.S. most years as well and having high availability of hybrid options in popular models contributes to the gain, she said.
“Other models are seeing increasing hybrid sales as well,” Brinley said. “While many consumers are not ready to jump into an EV yet, they are more familiar with hybrid technology. It enables better fuel economy without significant lifestyle changes.”
While Nissan’s Canton plant appears to be part of the company’s long-term production plans, Brockman said the automaker has made no further adjustments on its temporary pause on domestic EV production since announcing those plans in July.
“We have asked suppliers to temporarily pause work on the EV SUV programs while we evaluate competitiveness and market growth opportunities,” Brockman said.
Nissan discontinued the Xterra line in the U.S. after the 2015 model year amid declining sales. At the time, consumers began turning to more fuel-efficient crossovers including the Honda CR-V and Toyota RAV4.
