A shift in the auto market is becoming increasingly difficult to ignore as consumer demand shifts back toward larger gas-powered vehicles while electric vehicles struggle to maintain momentum.
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Nissan Americas Chairman Christian Meunier discusses the 2027 Z Nismo’s debut at the New York Auto Show, highlighting performance upgrades and the brand’s next-generation sports car vision on “Mornings with Maria.”
Recent sales data underlines this pivot. Midsize SUVs and trucks are making notable gains, while smaller cars and electric vehicles are losing ground, highlighting the growing gap between the industry’s ambitions and what consumers are actually buying.
According to Cox Automotive and Kelley Blue Book, mid-size SUV sales are up 15% in February, mid-size truck sales are up 14%, while compact car sales are down 8% and electric car sales are down 26% compared to the same time last year. EV momentum has become increasingly uneven. Electric vehicles represented 10.5% of U.S. new vehicle sales in the third quarter of 2025, but fell to 5.8% in the fourth quarter as incentives faded, highlighting a sharp decline from earlier gains.
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Nissan Americas Chairman Christian Meunier pointed to another pressure shaping the market: rates. Automakers and suppliers have absorbed billions of dollars in additional costs, limiting their ability to pass these costs on to buyers.
A vehicle frame moves along the assembly line at Nissan Motor Co.’s production facility. in Tennessee. (Luke Sharrett/Bloomberg/Getty Images)
“It’s a lot of money, but it’s a lot less than the exposure we had a year ago when it was implemented,” Meunier said.
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He added that the company has been working to reduce that burden while increasing domestic production.
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“We had $4 billion in exposure at the very beginning. We reduced it to $1.5 billion in 25 years, and we’re going to bring it down to zero. That’s our mission to build as many cars as possible in the U.S.,” Meunier said.
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