Nissan Pauses New Electric Car Development

By

Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

, Automotive Editor - May 22, 2024
2024 Nissan Leaf

Cooling demand for electric vehicles and incredibly high losses on each EV sold have numerous automakers rethinking their EV plans. Nissan, one of the first traditional brands to come out with an EV, has become the latest automaker to announce updated plans for future electric cars. Nissan first came out with the Leaf EV in 2010, and now, according to a report from Automotive News, Nissan has confirmed that it will pause U.S. production plans for its upcoming next-gen EVs. This means that the Japanese brand will be putting a $500 million investment on hold.

Auto News viewed a memo that Nissan sent to suppliers, which outlined how the automaker had adjusted the “development schedule” of two new all-electric sedans “to enhance product competitiveness.” In the memo, Nissan asked suppliers to “please stop all development activities related to [the electric sedans] until further notice.” The letter was sent to suppliers on May 17.

The original plans, according to the outlet, involved Nissan starting to manufacture the electric sedans in June 2026. Since originally announcing its intent to build two new electric sedans, Nissan has pushed back its timeline twice with the latest delay now having the vehicles coming out in November 2026. Nissan didn’t provide an updated timeline in its memo, but told suppliers that they would be updated in the middle of June.

An unnamed supplier that Automotive News spoke with stated that it could be “at least six or eight more months before [Nissan] returns with a new plan.”

2024 Nissan Ariya

While Nissan is hitting the pause button in regard to coming out with two new all-electric sedans, the Japanese automaker will reportedly expand the number of electric vehicles it manufacturers at its plant in Canton, MS. This will increase the number of vehicles built at the plant to five and it’s code-named PZ1L, claims GlobalData Automotive. The vehicle is expected to be an all-electric SUV and will be the third EV that will be built at Nissan’s Canton factory.

Additionally, Nissan will be switching the sequence for what EVs will be built first. Instead of focusing on sedans, the automaker will be building two midsize crossovers, reports Automotive News.

Obviously, suppliers aren’t too happy about Nissan’s decision to pause plans for electric sedans. Multiple delays and now a formal pause without any clear information for the future is upsetting. "These companies, small and large, cannot be expected to bid on vehicle projects when they're not confident it will reach production," said Sam Fiorani, Vice President of AutoForecast Solutions. “This could be Nissan’s most important decision in its history.”

Nissan has some large plans for how it builds future EVs. Earlier this March, Nissan announced that future EVs would be developed in families, have integrated powertrains, and utilize next-gen modular manufacturing, group sourcing, and battery innovations. Through these practices, Nissan hopes to reduce the cost of its next-gen EVs by 30% when compared to the current Ariya and cost-parity between all-electric vehicles and vehicles with an internal combustion engine by 2030.

Pictured: 2024 Nissan Leaf (Top), 2024 Nissan Ariya (Middle)

Source: Automotive News (Subscription Required)

Build & Price Your Nissan Leaf

, Automotive Editor

Based out of the Washington, D.C. area, Joel Patel is an automotive journalist that hails from Northern Virginia. His work has been featured on various automotive outlets, including Autoweek, Digital Trends, and Autoblog. When not writing about cars, Joel enjoys trying new foods, wrenching on his car, and watching horror movies. 

Follow On: Twitter

Privacy Terms of Use Your Privacy Choices Disclaimer Cookie Policy Manage Preferences
COPYRIGHT 1999-2024 MH Sub I, LLC dba CarsDirect.com