Nissan plant in Canton pausing electric vehicle production amid shrinking demand

Written on 07/14/2025
Ben Milam

Just over a year after Nissan announced plans to pause the manufacture of a pair of electric car models in the U.S., specifically at its Canton plant, officials confirmed a full cancellation of the sedans and a complete pause on EVs until 2028.

An internal memo from Nissan Americas chairperson Christian Meunier pointed to an overall retracting sedan market, according to Auto News. The planned production of two sedans, “LZ1F” and “LZ1E,” were announced as cancelled in the memo, along with an electric crossover dubbed “PZ1L.”

Nissan’s audible comes during a turbulent patch for the electric vehicle industry, with federal tax credits for purchasing an EV set to end after Sept. 30. Plus, the overall automobile market has been tossed to and fro by the White House’s storm of tariffs, leading to ballooning costs or thinning margins for many vehicle makers.

In the most recent fiscal year, Nissan reported losses of nearly $5 billion.

But even if the short-term outlook is gloomy for EV production in Mississippi, the Japanese automaker still has big ideas for Canton.

Much of Nissan’s manufacturing is moving to the U.S., partially in response to tariff costs as well as soaring logistics prices, and Canton seems it will play a big role. According to CarScoops, a new electric SUV will begin production in Canton, along with an EV on the luxury Infiniti line beginning production in May 2028. The auto news outlet also hinted that a lightweight pickup truck could also join the assembly line.

While the Canton EV production projects were scrapped, there’s good reason to expect plenty more beyond the 2028 models. Data from the International Energy Agency reported a 25% increase in EV purchases from 2023 to 2024, with more than one in five of every car purchase now being electric. 

Nissan’s manufacturing communications department could not be reached from comment at the time of publication.