- Nissan North America wants to turn things around with an all-new hybrid Xterra SUV.
- Executives recognize the appeal of a rugged lifestyle vehicle in the vein of the Ford Bronco.
- Plans, however, depend on resource prioritization, with EV projects possibly taking the lead.
Nissan is in crisis mode. With net losses projected to be in the region of $5 billion for the last fiscal year, the company is on track to post its largest-ever loss since its inception. After merger talks with Honda failed, the Japanese automaker is restructuring its business, with the North American market a large segment.
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Having cancelled the replacements for the Altima and Maxima (RIP Big Altima Energy fans), the company’s US operations want to focus on SUVs. And one key to turning things around, according to execs, is bringing the Xterra nameplate back from the dead.
The Original Xterra Was A Big Hit In The US
Originally launched in 1999, the Xterra was a hit for Nissan. It was based on the Pathfinder / Frontier pickup truck platform and offered a capable, no-frills approach that resonated with customers. It was discontinued in 2015, with emphasis shifted to unibody crossovers.
Read: Nissan’s Financial Collapse Is Worse Than Anyone Expected And The Fallout Isn’t Over
During its tenure, the SUV far exceeded sales expectations. Developed on a shoestring budget, it was expected to sell around 40,000 units annually. In its peak, it shifted 88,000, or more than double than original estimates.
Recapturing The Magic
Ten years after the Xterra bowed out, Nissan now finds itself considering resurrecting it as a strategic move to re-energize the brand. And the plans run deeper than the Nissan North America-endorsed Xterra concept that’s coming to SEMA later this year.
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Executives, including Nissan Americas Chairperson Christian Meunier and Nissan Americas’ product planning chief Ponz Pandikuthira, acknowledge the increasing consumer demand for SUVs capable of rugged outdoor adventures, as is evident by the popularity enjoyed by the Ford Bronco, Jeep Wrangler, and Toyota Land Cruiser.
“If I could bring a car tomorrow, that would be Xterra,” said Meunier, speaking to Auto News. “We’re working on it. We’ll find a way.” It’s also likely that a reimaged Xterra would move up a class, from compact SUV to the midsize segment.
Not A Yet Dead Cert Yet
While Nissan’s US leadership team may think a new XTerra could turn things around, there’s a practical problem the company needs to overcome: resources. Prioritizing the Xterra revival requires careful evaluation against other ongoing projects, particularly electric vehicle initiatives.
Nissan’s commitment to sustainability suggests the Xterra would likely feature a hybrid powertrain rather than pure internal combustion or full electric propulsion. Meunier proposed a series hybrid approach with an electric range of 70-100 miles supplemented by a gasoline-powered generator, which would extend the overall range to around 600 miles. This setup balances emission regulations with practicality, particularly for towing and off-road capabilities.
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The potential return of the Xterra underscores a broader industry trend toward rugged, so-called lifestyle vehicles. Nissan wants to re-engage with a growing, profitable market segment, with one dealer anticipating robust sales potential. They project annual sales of up to 80,000 units, driven by nostalgia and the enduring appeal of outdoor adventure vehicles.
Illustrations: Carscoops
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