The next-generation Nissan LEAF will no longer be manufactured in the United States. Nissan plans to manufacture a brand-new model in the UK, but the budget-friendly electric vehicle (EV) may lose its eligibility for IRS tax credits.
Nissan has officially confirmed that its Sunderland, UK, plant will manufacture the upcoming next-generation LEAF electric vehicle, in addition to producing two new all-electric SUV models.
Nissan’s top-selling European SUVs, the Juke and Qashqai, are set to join the electric revolution with new electrified variants. Nissan has committed a substantial investment of approximately £3 billion ($3.8 billion) to manufacture three new electric vehicles at its facility.
As a trailblazing model among the first mass-market electric vehicles (EVs), Nissan’s LEAF pioneered the way. Notwithstanding advancements in technology and battery life, premium electric vehicles have eclipsed the appeal of their compact counterparts.
Until 2020, when Tesla’s Model 3 surpassed it, the LEAF was the leading cumulative seller of electric vehicles. Since its introduction in 2017, Mannequin 3 has enjoyed remarkable success, catapulting to become the best-selling mannequin of both 2018 and 2019.
Slipping sales at LEAF as newer rivals join the fray. Through nine months, gross sales have declined significantly across all major markets, including a 37% drop in the US, a 28% decrease in Europe, and a 15% decline in Japan.
The next-generation Nissan LEAF will be the inaugural model to roll off the production line at the company’s revamped Sunderland facility, marking a significant milestone in its electric vehicle strategy. Upon completion of the subsequent year?
Nissan scraps plans to manufacture the next-generation Leaf in the United States.
As Nissan announces its plans to produce the all-new LEAF in the UK, questions arise about what this means for North America. Nissan reportedly has no plans to manufacture its latest Leaf model in the United States.
As the first mass-market electric vehicle (EV) in the US market, the LEAF marked the beginning of a new era. Despite its successful run, production of the current model is expected to cease by 2025.
The choice may ultimately set the leaf even higher than it already is? Nissan’s LEAF, once hailed as an affordable electric vehicle option, is set for a radical transformation.
Nissan plans to revamp its iconic LEAF by transforming it into an aggressive new-generation crossover-coupe-style SUV. The latest iteration will feature a more streamlined, compact design to avoid direct competition with other electric crossovers in the market.
A supply close to Nissan revealed that the design is nearing completion and bears a strong resemblance to the Ariya, the company’s inaugural all-electric SUV. Nissan’s concept car was likened to an “Ariya on steroids,” with one industry expert describing it as a “mini Ariya.” The automaker itself highlighted the vehicle’s connection to its Chill-Out idea, which had already been previewed.
The Chill-Out concept embodies the essence of a serene oasis, aligning perfectly with Nissan’s vision for a harmonious retreat. The car offers advanced security features and a comfortable interior. The concept is underpinned by the cutting-edge CMF-EV architecture, the same technology that propels the innovative Ariya. The vehicle also features Nissan’s innovative e-4ORCE electric four-wheel-drive management system.
Nissan’s upcoming LEAF model is poised to revolutionize its aesthetic appeal with a complete redesign, departing significantly from its current visual identity. Nissan informs dealers that its new product will provide an additional 25 percent range capacity.
Despite the absence of a federal tax credit, how far-reaching will the revamped Nissan LEAF become in the US market? Importing the mannequin from the UK would render it ineligible for a potential credit of up to $7,500.
The vendor noted that subsidies are essential for a brand such as Nissan, which caters to a price-conscious customer demographic. Without that tax incentive, competing in the USA would be an extremely challenging feat, according to the seller.
They candidly acknowledged that “promoting these EVs” is now hindered by the absence of a crucial incentive: “one hand tied behind our back.” The seller’s frustration was palpable, as they questioned the logic of exporting an electric vehicle to the USA without tax credits, wondering aloud, “Why would we even consider conveying this automobile to the American market?”
Electrek’s Take
Since Nissan was once regarded a pioneer in the electric vehicle market following the launch of the LEAF in 2010, it has struggled to maintain its lead.
The automaker has pledged a significant turnaround with an approximately $18 billion injection to introduce 15 new electric vehicles (EVs) worldwide by 2030. Nissan plans to invest $500 million in its Canton, Mississippi, factory to prepare it for electric vehicle production.
By 2026, Nissan plans to produce two electric vehicle models: a pair of sedans aligning with its manufacturing timeline. The highly anticipated LEAF substitute is slated for a release in the US market by 2025.
Without a competitive tax credit score, however, Nissan will face significant competition. By September, Nissan had sold approximately 10,000 LEAF models in the US.
