Japanese automaker Nissan has canceled plans to produce two electric sedans at its U.S. factories. The company is also reassessing the timeline for developing two battery-electric crossovers.
Nissan has faced significant challenges in recent years, including declining profits, leadership changes, and difficulties transitioning to electric vehicles (EVs). Most recently, the company’s attempt to merge with Japanese peer Honda fell through.
These struggles were evident last week when Nissan projected lower sales for fiscal year 2024, expecting to sell just 3.35 million units, down from 5 million in 2019. The company attributed this decline to “changes in the competitive environment and a drop in sales performance.”
In addition, Automotive News reported that Nissan has canceled plans to build two U.S.-made electric vehicles, known by their codenames LZ1F and LZ1E. This decision follows market uncertainty caused by former President Donald Trump’s tariffs and his push to end EV support programs.
Nissan confirmed the cancellation in a memo to suppliers, stating that the decision was made due to “recent changes in industry market conditions.” The company added that the LZ1F and LZ1E projects would be reassessed as part of a new vehicle program.
Despite these setbacks, Nissan confirmed that it would begin production of a Nissan-branded crossover, codenamed PZ1K, in January 2028. However, this marks a one-year delay compared to the original schedule. A similar crossover, the PZ1J, planned by Nissan’s luxury brand, Infiniti, will enter production in May 2028, about four months later than initially planned.
In March, Nissan had unveiled its EV pipeline, which included the re-launch of the Leaf as a small SUV. The new Nissan Leaf is set to launch in Australia in 2026. At the 2025 Auto Shanghai, the company also introduced the Frontier Pro plug-in hybrid pickup truck, one of nine “new energy vehicles” Nissan plans to launch in China over the next two years.
