Nissan has been making headlines in recent months for its efforts to get back on track after hemorrhaging money for an extended period. While much of the focus appears to be on cutting costs wherever possible, those measures are meaningless without bringing fresh products to market. The new Leaf and Sentra are a solid start, and the lineup will improve further in a couple of years with the return of a beloved nameplate.
No longer just a rumor, the Xterra is set for a comeback in 2028. Nissan Americas chairman Christian Meunier confirmed the news in an interview with Bloomberg, even sharing some early details. The rugged SUV will be powered by a V-6 hybrid setup and built at the Canton plant in Mississippi. A more upscale Infiniti version is also under consideration.
Meunier revealed that the Xterra will ride on the same body-on-frame platform as the Frontier, which makes sense given that the pickup truck is also assembled in Canton. Unsurprisingly, “dealers are super excited” about reviving a nameplate the company sorely needs. Body-on-frame SUVs are highly profitable, and Nissan wants a bigger slice of that market by targeting customers seeking something smaller than the Armada.
Pricing is still far off, but the new Xterra will certainly undercut the base Armada, which starts at $61,030 for the 2026 model year. The Frontier begins at $33,845, but its SUV sibling will cost more, especially with an electrified V-6 as standard.
Hints of the Xterra’s return first surfaced in April at the New York Auto Show, when Nissan Americas senior VP and chief planning officer Ponz Pandikuthira told Motor1: “We want to bring an Xterra back, we're working very closely on it.” A few months later, Automotive News reported from a dealer conference in Las Vegas that the SUV’s comeback was confirmed for 2028.
At that same meeting, Nissan also told dealers a Z Nismo with a manual was coming; news later made official by Meunier. With both of those details proven true, there’s good reason to believe a third tidbit from the meeting: a new Q50 sedan featuring a twin-turbo V6 with 400 horsepower and a six-speed manual borrowed from the Z.
Still, things will likely get worse before they get better. The next few years could be among the toughest in Nissan’s history. The company is closing seven factories and laying off 20,000 employees as it downsizes and optimizes operations. Annual production capacity will shrink from 3.5 million to 2.5 million units, and Nissan has even created a dedicated team to find additional cost-cutting measures. The situation is that dire.
CEO Ivan Espinosa hopes the sweeping restructuring and upcoming products will turn things around for the struggling Japanese brand. The new Xterra is certainly a step in the right direction, and it can’t come soon enough. Ideally, enthusiasts will also get that new GT-R they've been promised.
