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Nissan Xterra Could Be Canceled Soon

  • Nissan may cancel Xterra SUV; decision expected soon
  • The Xterra’s development costs are high
  • Don’t rush to dealers yet — or drop the Xterra from your shopping list

The Nissan Xterra may not be long for this world. A Nissan official recently admitted the Xterra could soon be canceled, noting the truck-based SUV’s poor fuel economy and high development costs.

According to Pierre Loing, Nissan America’s vice president of product planning, a decision on the Xterra’s fate will be made within the “next six months to a year.” The brand is debating whether to redesign the SUV, which went on sale in its current form for the 2005 model year.

Interestingly, Loing noted it isn’t slow sales that may shelve the Xterra. The SUV faces high development costs largely because it’s only sold in North America, meaning costs can’t be spread out over other markets. Plus, shoppers are turning their attention toward crossovers that return better fuel economy than the body-on-frame Xterra.

So where does that leave shoppers? If you like the Xterra, we wouldn’t run out and buy one just yet. Nissan may still decide to replace the SUV, which means the Xterra could last for years to come. And even if the Xterra is canceled, 2013 models are likely to remain at dealers for months before production ends.

We also wouldn’t recommend crossing the Xterra off your shopping list just because it may be canceled. While cancellation often hurts vehicle resale values, the Xterra benefits from strong residuals. Sure, resale may not be as high as competitors such as the Jeep Wrangler and Toyota FJ Cruiser, but we don’t expect values to plummet just because the Xterra is removed from the market.

Shoppers who choose the Xterra will find an off-road-ready SUV with standard V6 power and seating for five. Rear-wheel drive is standard, as is a 6-speed manual transmission; 4-wheel drive and a 5-speed automatic are optional. Priced from around $24,000 with shipping, the Xterra has few rivals aside from the Wrangler and FJ Cruiser.

What it means to you: If you’re interested in a new Nissan Xterra, there’s no need to rush to the dealer right away — but be prepared to make your move soon if Nissan decides to cancel the SUV.

Doug Demuro
Doug Demuro
Doug DeMuro writes articles and makes videos, mainly about cars. Doug was born in Denver, Colorado, and received an economics degree from Emory University in Atlanta. After graduation, Doug spent three years working for Porsche Cars North America. Eventually, he quit his job to become a writer, largely because it meant that he no longer had to wear pants. Doug’s work has been featured in a... Read More about Doug Demuro

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  1. ditto,   Im 68 and in all these years it is my absolute favorite vehicle for here in Colorado.   A GREAT MOUNTAIN MACHINE

  2. Don’t change the shape, change the mechanics… this is an icon and in colorado, a must have vehicle! Yes, I wish my Xterra got better gas mileage but you cannot deny it is a great looking vehicle which handles any terrain very well. You also can’t beat the room! Work on the mileage but leave the look alone!

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