Nissan to retreat on sedans but hang on to ‘Goldilocks' Sentra

Nissan Motor Co. is among a handful of brands still promoting and investing in sedans in the U.S. But that's about to change.

In the next couple of years, Nissan could ditch two of its three remaining sedan models, leaving only the compact Sentra in the lineup before the automaker debuts a battery-powered sedan by early next decade. Production of the Maxima large ended late last summer.

Nissan will drop the subcompact Versa after the 2025 model year, people familiar with the plans told Automotive News. According to AutoForecast Solutions, production is set to end in April 2025, with no next generation planned.

The midsize Altima will sunset following the 2026 model year after production was extended a year at Nissan's underutilized Canton, Miss., factory.

Nissan is said to be undecided about investing in a next-gen model. If the Altima is revived, it will likely be as a hybrid or plug-in hybrid.

Nissan is seeking to simplify its product portfolio and reorient it toward an electric future. But until then, Nissan retailers will be without many of the brand's most affordable models when high interest rates and inflation are squeezing car-shopping budgets.

Starting at $17,245 including shipping, the Versa is America's least expensive new vehicle.

In the first six months, Nissan's quartet of sedan models accounted for 36 percent of the brand's U.S. sales. Pressure from rising interest rates lifted demand for the budget-priced Versa and Sentra. The models saw a 62 percent and 55 percent boost in deliveries in the January-to-June period.

Nissan spokesperson Brian Brockman said sedans "remain an important part of the company's product strategy, providing advantages across several attributes, including cost of ownership."

"Nissan is committed to offering a complete lineup of vehicles that meet the needs of our customers across a variety of segments," Brockman said.

Nissan has long championed sedans even as much of the industry abandoned the segment once consumers gravitated toward roomier and more powerful crossovers, SUVs and pickups.

Nissan executives previously contended that lower-cost small cars remain relevant, especially for price-conscious, first-time car buyers. By staying in the game, Nissan bet it would grab market share as other automakers walked away from the segment.

The decision to soldier on with the Sentra is logical. The compact sedan was Nissan's second-best seller in the first six months totalling 89,028.

"It's just the right size," said Nissan retailer Chadi Moussa, co-founder of Carnamic, which operates two Nissan stores in the San Francisco Bay Area. "It's stylish and affordable."

Edmunds data shows nearly two-thirds of Sentras are purchased without a trade-in — a sign the model draws first-time buyers who could be converted into lifelong customers.

The Sentra also attracts buyers sitting on the sidelines awhile. Vehicle trade-ins for Sentras are typically 7.4 years old, compared with 5.6 years for Altimas and 4.8 years for Maximas, according to Edmunds.

The ownership experience is more favorable with Sentra owners, as 52 percent of the Sentras traded-in end up back at a Nissan dealer, the highest among the automaker's sedans.

"Sentra represents a good catchall model to maintain a presence in the sedan market that doesn't live at the extremes of either size or cost, sort of the Goldilocks within Nissan's sedans," Edmunds analyst Ivan Drury said.

Streamlining the sedan lineup to focus on the Sentra is expected to help increase prices and profit margins.

"I'd rather focus on selling one sedan model profitably," Moussa said. "With the Sentra as our sole sedan offering, we can maintain solid profitability."

The product reshuffle clears the deck for several zero-emission models that will begin arriving late this decade. Nissan expects electric vehicles to make up more than 40 percent of U.S. sales by 2030.

Nissan will build two sedans and three crossovers at its Canton, factory for the Nissan and Infiniti brands and for alliance partner Mitsubishi. Nissan is also exploring plans for a lightweight Frontier-size electric pickup.

The electric crossovers will arrive before the sedans. They will share a platform but look distinct and span vehicle segments.

Future platforms will support a handful of models and multiple powertrains, allowing Nissan to slash development and production costs.