Aug 30th, 2010 by Dean Hightower
Nissan may discontinue the Xterra mid-size SUV. Slow sales and impending changes to the gas mileage laws in the United States are cited as the reasons behind the Xterra’s potential cancellation.
The mid-size, off-road SUV segment is collapsing and sales of the Xterra are low, according to Larry Dominique, Nissan’s vice president-advanced product and product planning and strategy. He added that the only truck doing well in the segment is the Jeep Wrangler.
Dominique said that Nissan officials love the Xterra and want to keep the off-road-ready SUV as long as possible. But slow sales and the need to meet CAFE standards may force the company to discontinue it, according to Ward’s Auto.
The new CAFE standards will set a minimum average gas mileage rating for every vehicle in a carmaker’s lineup. That will mean that fuel sippers like the Nissan Versa and Sentra will offset the gas guzzlers like the Titan, Armada and Pathfinder. That also means that slow-selling trucks like the Xterra will become a burden to the company, and will need to be canceled.
The Nissan Xterra’s slow sales could prove beneficial to buyers. Nissan has not officially canceled the Xterra, so expect the company to offer large incentives in the form of low interest rates and high cash back allowances in the coming months. Nissan has already said that the company is fond of the Xterra and doesn’t want to see it go, so if sales turn around thanks to incentives, the Xterra may survive.