Crossover demand drives Nissan to pivot EV strategy

Nissan has cancelled plans for two U.S.-made electric vehicles and will instead introduce an unidentified new EV at its Canton, Mississippi factory. The decision was communicated in an April 21 memo to suppliers, as reported by Automotive News.

The automaker also confirmed the cancellation of a planned subcompact electric crossover, codenamed PZ1L, which was expected to be similar in size to the Leaf hatchback or Rogue compact crossover. Additionally, development of two electric sedans, known internally as LZ1F and LZ1E, has been shelved. The company indicated those vehicles may be reassessed as part of a new vehicle program.

“The sedan market is shrinking,” said Nissan Americas Chairperson Christian Meunier. “We need to face reality.”

Nissan originally intended to use a new EV platform to bring two sedans to market in mid-2026 as replacements for the Altima and Maxima. However, company executives said market data no longer supports such a strategy, especially with projected starting prices exceeding $45,000 — a segment Nissan does not consider its core.

Production plans for a Nissan-branded electric crossover, codenamed PZ1K, have been delayed by nearly a year and are now scheduled to begin in January 2028. A luxury variant under the Infiniti brand, codenamed PZ1J, is expected to enter production in May of the same year, approximately four months behind its original timeline.

Both crossovers are based on a longer wheelbase than the Rogue and are intended to offer interior space comparable to the midsize Pathfinder. The Nissan version features styling cues from the Xterra and Pathfinder, including a three-slot hood design and boxy lighting elements. The Infiniti variant is expected to target upscale consumers.

The new EV platform is designed to support multiple body styles, including crossovers, sedans, and potentially a lightweight pickup. It will underpin up to five electric vehicles in the compact and adjacent segments. The platform supports conventional lithium-ion batteries but is not configured for the solid-state battery technology Nissan aims to introduce in 2028.

No further details were provided on the third EV Nissan plans to build in Canton, including its name or production timeline.

According to Nissan executives, the flexibility of the platform and the capacity of the Canton facility could enable collaboration with another automaker to reduce manufacturing costs.