- Nissan CEO Ivan Espinosa believes there is still demand for cheap cars in the US.
- Tariffs on Mexican-made cars make it difficult to price very cheap models competitively.
- The new Versa is being built in Mexico for Latin America, but it likely won’t make it to the US.
The death of the Nissan Versa in the US after the 2025 model year leaves the market without a new car priced under $20,000. While Nissan still offers relatively affordable models like the Kicks ($24,275) and Sentra ($23,845), the sub-$20,000 segment has essentially disappeared. Even so, Nissan is not ready to abandon the idea altogether.
In a recent conversation at the company’s headquarters in Yokohama, Japan, CEO Ivan Espinosa told us that he still believes there’s demand for ultra-affordable cars like the Versa. According to Espinosa, the model might still be available in the US today if not for the tariffs imposed by the Trump administration. He noted:
‘I think there is [a market for ultra-affordable cars]and we’re still seeing the demand. But what makes it so difficult is the context; there was a question about the previous rates. There is demand—the question is how to get the price right.’
Photo by: Nissan
Nissan started production of the 2027 Versa earlier this year at its Aguascalientes A1 plant in Mexico. However, the model is not destined for the US, this is largely due to a 25 percent tariff on vehicles and parts imported from Mexico. Instead, it will launch in Latin American markets later this year, with prices starting at ₱374,900—over $21,000 at current exchange rates.
Of course, the Versa isn’t the only sedan in Nissan’s lineup—or, isn’t it? The company has ended production of the full-size Maxima and is expected to phase out production of the mid-size Altima around 2027. However, Espinosa believes there is still a future for sedans in the lineup. He noted:
‘I think there is still room for a sedan. The Sentra is a very good product, and it is also improving. So it’s like playing in the lower area of the Altima first. So for now, we are continuing to watch the market to see how it looks… Maybe a price below or a Kicks price will make sense. But looking at the current context, as we said before, regarding tariffs, it is quite difficult to implement such a program.’
Motorcycle Pickup1: Espinosa’s comments suggest Nissan still sees potential in affordable sedans in the US, particularly at the lower end of the market. However, for now, tariffs on Mexican-made vehicles make it difficult to justify returning vehicles like the Versa.
