The Canton factory was initially positioned as a key site for Nissan’s electric ambitions in the United States. In 2021, the company announced plans to manufacture two electric models there, aiming to ramp up production significantly by the end of the decade.
That strategy has now been reversed. Nissan is redirecting its efforts toward body-on-frame vehicles, a segment it believes aligns more closely with current demand and its updated priorities. The move also addresses the plant’s underutilization, which has become increasingly evident in recent years.
A Strategic Shift Away From Electric Vehicles
According to Automotive News, Nissan informed its suppliers on April 30 that it would no longer proceed with EV production in Canton. The company later confirmed the decision, stating that it reflects “market conditions, customer demand, and Nissan’s updated strategic direction.”
This marks a clear departure from its earlier objective of producing 200,000 electric vehicles annually at the site by 2028. The Canton facility, which had been earmarked as a cornerstone of that plan, will now play a different role within Nissan’s manufacturing network.
The decision mirrors a broader adjustment within the company, as it reassesses its investments and production priorities in the U.S. market.
New Truck and SUV Lineup Planned for Canton
Among the vehicles slated for production at the Mississippi plant is the return of the Xterra, a body-on-frame SUV. The model is expected to launch in 2028 with a starting price below $40,000, as reported by Motor1.
The Xterra will share its platform with other upcoming models, including a redesigned Frontier pickup and a new three-row SUV. The latter is described as potentially being a more rugged variant of the Pathfinder.
These vehicles are expected to share significant components, including everything forward of the B-pillar. This approach suggests a strategy focused on platform and parts commonality to streamline production.
An Underutilized Plant in Need of Volume
The Canton factory currently produces the Frontier and the Altima, yet it operates well below its maximum capacity. The plant is capable of building more than 400,000 vehicles annually, but Nissan sold only 158,500 units of those two models combined in 2025.
This gap highlights the challenge Nissan faces in maintaining efficient production levels. The shift toward trucks and SUVs is expected to help address this imbalance by increasing output at the facility.
Less than a year ago, a separate report indicated that Nissan had considered manufacturing Honda-branded pickups at the same plant, underscoring ongoing efforts to better utilize the site.
