Canton facility will build body-on-frame SUVs instead of electric vehicles after supplier notification April 30.
Nissan scrapped its $500 million electric vehicle investment at Canton, Mississippi. The facility will build trucks instead. Suppliers learned April 30.
The reversal reflects broader automaker retreat from ambitious EV targets amid slower adoption rates. GM similarly restructured production plans this year, according to Automotive News reporting published May 2024. Nissan's decision aligns with "market conditions and customer demand," the company confirmed.
Canton Factory Switches from EVs to Body-on-Frame
Nissan's internal supplier notification detailed the production shift from two planned electric models to multiple truck variants. The Xterra SUV will anchor the new lineup, targeting under-$40,000 pricing when sales begin in 2028. A redesigned Frontier pickup and three-row SUV variant join the Canton manufacturing roster. All models share platform architecture and components forward of the B-pillar, streamlining production costs. The body-on-frame construction contrasts sharply with the unibody EV platforms originally planned for the 400,000-unit-capacity facility.
Capacity Utilization Remains Critical Challenge
Canton's production capacity far exceeds current output levels. The facility can manufacture 400,000 vehicles annually but Nissan sold only 158,500 Frontier and Altima units in 2025. That represents 39.6% utilization—a ratio that forces fixed costs across fewer units. The planned truck expansion could add 200,000 units annually by 2028, pushing utilization toward 89.6% if Altima production continues. Current employment stands at approximately 5,000 workers, though the company hasn't disclosed staffing changes accompanying the product shift. Honda faces similar capacity challenges across North American facilities.
EV Retreat Contradicts 2021 Electrification Push
The Canton decision reverses Nissan's 2021 commitment to American EV manufacturing. Three years ago, executives positioned Mississippi as an electrification hub serving domestic markets. Now the facility joins traditional truck production alongside Tennessee's Smyrna plant, which builds Pathfinder and Murano. Other manufacturers report similar EV demand shortfalls compared to 2021 projections. Ford scaled back Lightning production 50% in 2024. GM delayed multiple Ultium launches past original timelines. Nissan's pivot acknowledges that truck demand remains more predictable than electric vehicle adoption rates in American markets.
Supply Chain Partners Adjust Manufacturing Plans
Component suppliers received formal notification Tuesday that EV-specific contracts would terminate. Battery pack assembly equipment planned for nearby facilities now faces cancellation or relocation. Meanwhile, traditional powertrain suppliers gain extended contracts supporting combustion engine production through the decade. Japanese parts manufacturer Aisin confirmed additional transmission orders supporting the truck lineup. Body panel suppliers must retool for SUV configurations rather than sedan-height EV profiles. The supplier network serving Canton involves 47 companies across six states, employing approximately 12,000 workers whose contracts depend on Nissan's production volumes.
Nissan originally targeted 200,000 annual EV units from Canton by 2028, matching Tesla's Austin facility output. The Xterra name returns after 15 years, last appearing on 2015 model year vehicles. Production timeline suggests first deliveries in late 2027. The complete Nissan model history and specifications are catalogued in the Global Auto Index manufacturer database.
