Nissan Xterra the Comeback Hero Nissan Needs? Hybrid Revival Set for 2028 with Potential Infiniti Sibling
Nissan Xterra is set to revive SUV in 2028, returning to the midsize off-road SUV market it once dominated. After being discontinued a decade ago due to tougher emissions rules and a shift towards crossovers, the Xterra is making a comeback with a hybrid V6 powertrain. This revival could be a crucial turning point for Nissan, which has been striving to stabilize its position in the US market, and potentially offer a much-needed boost to Infiniti as well.
A Rugged Past and a Promising Hybrid Future
The original Nissan Xterra was a beloved, truck-based, and practical off-road SUV, directly rivaling models like the Toyota 4Runner. Its return, first hinted at through a patent filing and now confirmed by Nissan, aims to leverage its rugged heritage with a modern, efficient twist.
- Hybrid Powertrain: The new Xterra will feature a hybrid V6 powertrain, sharing its platform and powertrain components with the Frontier pickup, Pathfinder, and Infiniti QX60. This strategic move ensures cost-efficiency and leverages existing, proven technology.
- Market Momentum: For Nissan, which has faced challenges in stabilizing its US foothold, the Xterra’s return is more than just a nostalgic move. It represents a potential catalyst for regaining sales momentum and brand relevance.
A Potential Infiniti Version and Production Benefits
According to Nissan Americas chairman Christian Meunier, the decision to revive the Xterra has been met with enthusiasm from dealers.
- Dealer Excitement: “The dealers are super excited about it because it’s going to be a great example of Nissan coming back,” Meunier stated, highlighting the positive sentiment around the model’s return.
- Scale and Cost Efficiency: The new Xterra will “bring scale back to the plant and get the costs at the right level,” indicating that increased production will optimize manufacturing efficiency.
- Upscale Infiniti Sibling: Notably, Nissan is also considering a more upscale, Infiniti-branded version of the SUV. This move could significantly broaden its market reach, appealing to a wider customer base seeking a premium off-road experience.
- Factory Utilization: The Xterra’s return will help fill unused capacity at the Canton, Mississippi factory, which may eventually assemble the Armada and Infiniti QX80 alongside it. Body-on-frame SUVs are generally more profitable, and Nissan is strategically positioning itself to capture a larger share of this lucrative market segment.
Shifting Away From EVs (for now) in the US
The decision to bring back the Xterra comes amidst a strategic shift in Nissan’s EV plans for the US market.
- EV Program Freeze: Nissan has put a freeze on its US-built EV program, shelving previous plans to launch a fully electric SUV from Canton in 2028. This decision is influenced by softening demand for EVs and the expiration of federal subsidies.
- Reduced EV Offerings: The company continues to import the Leaf from Japan, though volumes have been reduced due to tariffs. The less popular Ariya has also been axed from the lineup.
- Market Uncertainty: “With the market being very uncertain about EVs, I think it’s the right thing to do,” Meunier explained, signaling a pragmatic adjustment to current market realities.
With the Xterra set to sell alongside updated models like the Sentra and an upcoming plug-in hybrid and e-Power Rogue, Nissan’s future in the US appears more robust for now. If successful, the new Xterra could indeed prove to be the comeback hero Nissan desperately needs, while also providing a crucial lifeline for the Infiniti brand.
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