Nissan Withdraws Ariya Electric Vehicle from US Market

Nissan will reduce its offering of electric vehicles in the US market and, for this reason, will stop selling the Ariya compact crossover in the neighboring country once the 2025 model units are sold out.

According to a report by AutoNews, dealers in the neighboring country have already been notified that once production of the 2026 model begins, the plant in Japan that assembles this model will stop building the version with specifications for that market.

The Japanese automaker anticipates that sales of electric vehicles will fall dramatically once the tax incentive for these types of vehicles expires.

In addition to the above, the tariffs imposed by the United States on imported vehicles reduce the profitability of this product, a source familiar with the decision told the specialized media outlet.

The decision comes a few days after the Japanese automaker announced that it will cease operations at two global design studios, one in San Diego, California, and the other in Sao Paulo, Brazil, with a view to reducing costs and time between launch cycles.

The cut is part of the Re:Nissan restructuring program, announced by CEO Ivan Espinosa last May, which includes the elimination of nearly 20,000 jobs and the closure of seven plants.

The company said that the design activities and programs of the affected studios will be transferred to other centers to ensure continuity and alignment of priorities.

Following the realignment of the design area, functions will be concentrated at the Global Design Center in Atsugi, Japan, near the company's global headquarters, Studio Six in Los Angeles, Nissan Design Europe in London, Nissan Design China in Shanghai, and the Creative Box Studio in Tokyo.

Operations in London and Japan will also be reduced, albeit to a lesser extent. The reorganization is expected to be completed by the end of fiscal year 2025.

The Yokohama-based automaker seeks to shorten the product development cycle to 30 months. To achieve this, it must reduce the time required for design by 40%, which is what it takes for its Shanghai team compared to its counterparts in the rest of the world.

The development cycle will be reduced from 52 to 37 months for the launch of new vehicles, while the next-generation cycle will be reduced from 48 to 30 months.