Nissan is reconsidering its electric vehicle (EV) production timeline within the US, attributable to potential changes in energy and trade policies, reported Bloomberg.
The corporate’s North American production strategy is being reconsidered in response to potential policy shifts, including the elimination of a $7,500 tax credit for EVs.
Nissan Americas operations chief planning officer Ponz Pandikuthira indicated that the beginning date and output levels for EVs on the Canton, Mississippi plant are uncertain. This is basically attributable to President Trump and the Republican Congress’s stance on EV incentives.
Pandikuthira in an interview to Bloomberg said: “In the event that they pull back on the $7,500 credit, we all know the speed of adoption goes to slow.
“We actually don’t need to be able of constructing models there’s no demand for.”
Earlier, the corporate had plans to introduce 4 recent EV models at its factory in Mississippi, starting in 2028, with readiness for production as early as 2027.
Nonetheless, these plans could also be delayed, and production volumes may be reduced in favour of gas-electric hybrids, including plug-in models, at their Smyrna, Tennessee plant.
Pandikuthira added: “We’re staying closely tuned to what happens with regulations. We will resolve which of them to ramp up and which of them to decelerate.”
In a separate move, Nissan has decided to discontinue two Infiniti models, the QX50 and QX55, by the top of this 12 months due to low demand.
These models are currently produced at a three way partnership plant in Mexico with Mercedes-Benz.
Nonetheless, the firm has no plans to cut back operations at its other facilities in Mexico.
The longer term of the Mexican three way partnership, referred to as Cooperation Manufacturing Plant Aguascalientes (Compas), stays uncertain beyond May 2026, when it should stop assembling a Mercedes model.
The three way partnership CFO Mark Davidson wrote in an email: “Nissan and Mercedes Benz are continually reviewing and adapting to requirements as needed. We’ve no further comments currently.”
Amidst these changes, Nissan is reportedly planning as much as 2,000 job cuts within the US this 12 months, aiming to cut back its output by about 25%.
These measures follow a worldwide restructuring plan announced last 12 months to chop 9,000 jobs and reduce production capability by 20% attributable to financial challenges.
Last week, Bloomberg reported that Nissan Motor plans to halt the production of its AD compact van in November this 12 months to lower excess production capability.
“Nissan may revise EV production plans in US amid policy concerns-report ” was originally created and published by Just Auto, a GlobalData owned brand.