Nissan pushes back electric vehicle transition at Mississippi plant, delaying launch of five new models.
U.S. electric vehicle (EV) sales increased by 2.6% during the initial three months of 2024 in comparison to the same period in 2023, as per Kelley Blue Book. The first quarter of 2023 had registered a significant jump of 46.4% from the previous year.
Industry experts had anticipated an escalation in EV interest; however, the situation is seemingly the opposite. Consumers are apprehensive about the high cost of EVs and the ability to charge them conveniently, as per the consumer survey company JD Power. These concerns have resulted in a decline in EV consideration by customers.
At present, Nissan markets two EV models in the U.S. - the Leaf compact hatchback and the Ariya SUV. Initially, Nissan declared plans to manufacture five additional EV models in Canton including two that were originally slated for production in 2025. This range would consist of both Nissan and Infiniti vehicles, with the latter being Nissan's luxury brand. Nissan is postponing the commencement of producing these vehicles in Mississippi.
The company released a statement saying, "We are adjusting the timeline for the introduction of these five new models to ensure we bring the vehicles to the market at the right time, prioritizing in line with customer demand and maximizing the opportunity for our brands and supplier partners."
It has been previously reported by Automotive News about these delays.
Nissan intends to introduce 19 EV models globally by 2030, as per a spokesperson.
Earlier, Nissan announced a $500 million investment in the factory to equip it for assembling the new electric vehicles. The factory in Canton currently accommodates around 5,000 workers and manufactures the Nissan Altima sedan, Frontier, Titan, and Titan XD pickups.
Similar to Nissan, other automakers have adopted measures to scale back production of new EVs and EV batteries owing to concerns about a decreasing demand. Previously, GM slowed down its intended spike in production for the Silverado EV pickup. Ford reduced the expected size of a factory it's constructing to produce EV batteries.
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Nissan's decision to delay the launch of five new electric vehicles in its Mississippi plant affects its business strategy for electric cars. Due to the high cost and inconvenient charging possibilities of electric vehicles, many consumers are hesitant, which negatively impacts the car business.
Source: edition.cnn.com
