Why Did Nissan Discontinue The Xterra?

Automakers rarely issue official statements as to why they choose to discontinue one of their vehicles, so it was a mystery why Nissan discontinued the Xterra in 2015, with 17 model years to its credit and a decade since its last redesign. While the last iteration of the Nissan Xterra was showing its age, it's one of the discontinued Nissan models we wish were still available today, albeit in an updated form worthy of its potential.

The recent resurgence in premium off-road-capable SUVs such as the Ford Bronco, Jeep Grand Cherokee, and Toyota Forerunner indicates the market is ready for a revised Xterra that could revive the Nissan brand. However, it seems unlikely that Nissan would place any sizable bets on the Xterra, given that its poor sales performance was likely a main reason that it was discontinued in the first place.

Cost was another reason that the "Made in USA" Nissan Xterra was culled from the lineup following the 2015 model year. Edmunds points out that the mid-2010s was a time of tightening emissions and safety mandates. With the Xterra's poor sales performance, upgrades were likely hard to justify in any Nissan boardroom.

The 2015 Nissan Xterra was powered by a 24-valve DOHC 4.0-liter V6 with Nissan's variable valve timing. The Xterra's powerplant produced 261 horsepower and 281 lb-ft of torque and was backed by a five-speed automatic transmission and part-time four-wheel drive. The four-wheel drive transfer case featured high and low range selections, the hubs locked in automatically, and a locking rear differential was standard issue for the Xterra.

The Nissan Xterra was a rugged off-roader capable of negotiating terrain other SUVs could not, and it boasted a 5,000 pound towing capacity. However, the same body-on-frame construction that made it rugged and off-road capable made it ride and handle more like a pickup truck and less like the crossover-type SUVs that were gaining popularity at the time. So, while the Nissan Xterra was a good SUV for someone who wanted a vehicle capable of tackling nearly any terrain, it wasn't the best option available for daily commutes across town due to its EPA-estimated 15 mpg city fuel economy.

While there's been some space at SlashGear dedicated to wishing for the Xterra's return to the Nissan lineup, it's unlikely to come to pass. Nissan already has a diverse lineup of SUVs to meet the needs of its customers. Models like the Armada, Rogue, Murano, and Pathfinder offer a more comfortable driving and passenger experience than that of the Xterra, and the Nissan Frontier pickup truck provides capable off-road prowess, especially in Pro-4X trim.

Another potential nail in the coffin lid of the Xterra is the recent merger discussions between Nissan and Honda. When Nissan still produced the Xterra, one of its main competitors was the Honda Passport. Given the redesign of the Honda Passport slated for the 2026 model year, it seems likely that the new automaker-giant, expected to be the third largest in the world by sales volume if the merger goes through, would dilute the sales potential of one of its premier models by bringing the Xterra back to production.