Nissan Motor Corporation is increasing U.S. production of vehicles sold in this country, but the head of its North American unit says it’s vital any update to the U.S. Mexico Canada trade agreement does not make it more difficult for the automaker to produce less costly models in Mexico.
It’s all about addressing the ongoing affordability issue many vehicle shoppers face by being able to keep prices low for some entry-level models built in Mexico where labor costs are lower than in the U.S., said Christian Meunier, chairman of Nissan Americas, in an interview.
“We know the customers that buy these cars are stretched and they can’t afford the more expensive products, so we keep it that way, but obviously we’re pushing the governments to the U.S. government to acknowledge that maybe for very low, low price product, affordable product, Mexico might be a good option,” said Meunier.
The average transaction price for a new vehicle sold in the U.S. as of April stood at $46,093, according to Edmunds.com.
Meunier pointed out Nissan has markedly increased U.S. production for vehicles sold here, boosting it to 40% in January, 2025 just before Pres. Donald Trump imposed higher import tariffs, increasing that to 65% at the end of December, with the goal of bringing that to 80%.
“So, I think what we want to do is really have all the core models for the U.S. market made in the U.S., with the exception of the entry-level cars, that would be made in Mexico,” said Meunier.
Entry-level cars include the Sentra and Kicks.
Affordable technology
Affordability is a central theme of what Nissan calls its long-term global vision titled “Mobility Intelligence for Everyday Life,” which features greater use of artificial intelligence in its vehicles as well as bringing back a favorite model in a revised form, all while holding the line on pricing, or, as Meunier expressed it, “democratizing” technology.
“The plan is really to bring technology for everyone– to bring affordable technology that makes people’s life easier,” explained Meunier. “We’re really, really focused in the region, but also at global level to bring simpler, user-friendly technologies that brings benefits because I think in the past, in the last few years, and even decades, I think a lot of manufacturers have multiplied technology for the sake of it, putting a lot more cost in the vehicles without really bringing any kind of benefits to customers.”
A key element of that is what the automaker calls AI defined vehicles, or AIDV using its AI Drive technology, which it intends to use in 90% of its lineup over the long term.
Meunier says AI will help the company bring new technology to the market less expensively and quicker, reducing a six year life cycle for a car’s software to one or two years using over the air updates.
The first, so-called democratization, of the technology will arrive at the end of 2027 or the beginning of 2028, initially in Japan then the U.S., through a partnership with an unnamed UK company that specializes on autonomous drive according to Meunier.
New hybrid Rogue e-POWER
Arriving later this year, the new 2027 Rogue Hybrid e-Power will be equipped with Nissan’s hybrid powertrain that features dual-motor all-wheel drive.
Return of the Xterra
Also included in the plan is the return of the Nissan Xterra SUV in the 2028 model year. First introduced in 2000, the truck-based SUV was discontinued in after the 2015 model year due to declining sales.
The rugged SUV maintained a segment of fans over the years, prompting the company to bring it back with updated powertrain choices and, in keeping with the company’s theme of affordability, a lower price.
“It will have a V6 power train with an option as a hybrid system, but also the durability of a frame, and at the same time it will be affordable. So that’s why we’re targeting a below $40,000 for an SUV,” said Meunier.
Infiniti updates
Nissan’s Infiniti luxury brand is also receiving updates with the QX 65 right now, then next year a sedan, with a new compact SUV, the QX50, based on the Rogue platform, the following year, according to Meunier.
EVs take back seat
While the company is going big on conventional hybrids and plans to offer plug-in hybrids and extended range options through partnerships in the future, battery electric vehicles are not in its plans.
“When you look at, and you step back, and look at EVs, they’ve represented less than 6% of the total market, with Tesla representing more than 50% of that,” explained Meunier. “So, there’s not a lot of market left for all the other OEMs.”
A key factor in that is the end of federal tax breaks on EV, putting them out of reach for many shoppers, he pointed out.
Financial, sales progress seen
This all represents a concerted effort by the automaker to work its way out of a down period.
In announcing financial results for the fiscal year that ended on March 31 the company said it is “committed to achieving positive automotive operating profit and free cash flow by the end of FY2026, excluding the impact of tariffs.”
Meunier believes the company is chipping away, making progress, but there’s work to be done, declaring, “I think we’ve done 60% of the job. We still have 40% to go, and then hopefully in 2027 we’ll be in a position to expand big time and bring Nisen to where it belongs, be a big player among all the major OEMs in the world.”
