Japanese automaker Nissan has reportedly canceled two electric sedan projects that were to be built in the US after a difficult 2024. Automotive News reported that the decision was made citing industry market conditions. Tariff confusion and market uncertainty in 2025 may have led to the company’s decision.
The information, leaked in a memo to suppliers on April 21, was reportedly confirmed by a Nissan spokesperson citing “industry market conditions.” The sedans, codenamed LZ1F and LZ1E, were expected to hit the market in 2026 and 2027, respectively. However, the market launch of these projects was pushed back a year in January 2024, indicating internal doubts within the company.
Experts point out that tariffs are not the only reason for Nissan’s decision. The decision may have been influenced by the challenges Nissan has faced in the electric vehicle market over the past few years and the lack of consumer interest in sedan models. According to a report by InsideEV, Nissan has been rethinking these plans for a long time.
However, Nissan is optimistic about the US market. At the 2025 New York Auto Show, Nissan USA’s head of sales and marketing, Vinay Shahani, said that the company’s strong manufacturing facilities in Smyrna, Tennessee, and Canton, Mississippi, are a boon for the company. He added that this will give it the opportunity to promote models built in the US.
With the sedan plans abandoned, Nissan is redirecting its resources to vehicles that are more attractive to the US market. According to a report by Automotive News, a new electric crossover is expected to hit the market by 2028. The company estimates that this model will generate more interest among consumers than sedans.
This strategic shift by Nissan is part of the company's efforts to address market challenges. Despite the economic crisis, Nissan is clearly trying to consolidate its position in the electric vehicle sector. However, the fact that new models will not arrive until 2028 could pose a challenge for the company in a competitive market.