Trouble continues to ripple through the automotive industry under Trump’s trade policies, and the latest victim is the Nissan Rogue — a blow the automaker could have done without.
- Nissan was counting on the $7,500 U.S. rebate to boost Rogue PHEV sales
- The company will now fast-track the hybrid version
- The lack of a hybrid option is hurting Rogue sales in the U.S.
Although Nissan was among the first mainstream automakers to offer a fully electric vehicle with the LEAF back in 2011, it has been slow to embrace hybrid technology. A few models have appeared here and there, but none have made a lasting impact.
A few years ago, the second-generation Nissan Rogue was offered in the U.S. with a hybrid powertrain, a 2.0-litre four-cylinder producing 176 horsepower. However, it never made it across the border into Canada and was discontinued after the 2020 model year. Since then, even though it remains Nissan’s best-selling model, the Rogue has gone without any form of hybridization. To improve fuel efficiency, Nissan instead opted for a downsized 1.5-litre variable-compression turbo three-cylinder engine.
2025 Mitsubishi OutlanderAs competitors increasingly offer hybrid and plug-in hybrid powertrains in their compact SUVs, Nissan decided to turn to its partner Mitsubishi. By 2026, the Rogue is expected to adopt the same 2.4-litre four-cylinder engine and three-motor setup found in the Mitsubishi Outlander PHEV. It’s about time. This system should provide up to 61 kilometres of pure electric range before switching to hybrid mode.
2025 Nissan RogueGoodbye, Tax Credit
Nissan’s pricing strategy for the Rogue PHEV in the U.S. relied heavily on the $7,500 federal tax credit offered for electrified vehicles. With the arrival of the Trump administration and the end of that program, the Rogue PHEV loses a key advantage.
“Everything was relying on that $7,500 tax credit,” a person familiar with the vehicle’s launch plan told Automotive News. “It’ll be tough for the next few months.” Another source said Nissan now expects to sell fewer than 10,000 Rogue PHEVs in 2026.
This is a serious issue that Nissan must address quickly, especially as Rogue sales continue to decline south of the border, even though the model still represents roughly 25% of Nissan’s total U.S. volume.
Hybrid to the Rescue
Originally planned for the first half of 2027, the launch of the Nissan Rogue e-Power hybrid has now been moved up to October next year for the U.S. market. The company will initially import the model from Japan, before starting local production at its Smyrna, Tennessee plant in 2028.
The Rogue e-Power will debut Nissan’s third-generation series-hybrid system. In this setup, the electric motor drives the wheels, while a gasoline engine works only as a generator to recharge the battery, similar in concept to the Chevrolet Volt. Designed for lighter, more compact vehicles, the e-Power system can also deliver all-wheel-drive performance.
Nissan to Launch Third-Generation e-Power Hybrid in U.S. with Next-Gen Rogue
Production Capacity
Alongside the next generations of the Rogue and Infiniti QX50, Nissan is also exploring the possibility of equipping the subcompact Kicks with e-Power for the U.S. market, though no Canadian plans have been announced.
According to a document shared with U.S. suppliers and reviewed by Automotive News, Nissan could produce up to 138,899 e-Power crossovers during the fiscal year running from April 2028 to March 2029. Annual output could then rise to 161,633 units over the following four years.
Nissan U.S. sales chief Michael Soutter acknowledged that addressing the brand’s lack of hybrid models is a top priority. “We want to meet the customer where they are,” Soutter told Automotive News. “The sooner we can have our e-Power, the better.”
In the same effort to improve profitability, Nissan is reportedly hoping to sell part of this hybrid production to Ford and Stellantis, both of which are also in need of electrified solutions.
