Nissan CEO: There's Still A Market For Cheap Sedans

We spoke with Nissan CEO Ivan Espinosa, who still believes in the idea of affordable sedans for the US.

2025 Nissan Versa

Photo by: Nissan

Jeff Perez

By: Jeff Perez

Apr 14, at 9:00am ET

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the breakdown

Nissan CEO Ivan Espinosa believes there's still a demand for cheap cars in the US.
Tariffs on Mexican-built cars make ultra-cheap models hard to price competitively.
A new Versa is being built in Mexico for Latin America, but it likely won't come to the US.

The death of the Nissan Versa in the US following the 2025 model year leaves the market with zero new cars 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 vanished. That said, Nissan isn’t 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 tariffs introduced by the Trump administration. He notes:

'I think there is [a market for ultra-affordable cars], and we still see the demand. But what’s making it very difficult is the context; there was a question about tariffs earlier. There’s demand—the question is how to get to the right price.'

2025 Nissan Versa

2025 Nissan Versa

Photo by: Nissan

Nissan began production of the 2027 Versa earlier this year at its Aguascalientes A1 plant in Mexico. However, the model isn’t headed to the US, largely due to the 25-percent tariff on vehicles and parts imported from Mexico. Instead, it will launch in Latin American markets later this year, where it starts at ₱374,900—just over $21,000 at current exchange rates.

Of course, the Versa isn’t the only sedan in Nissan’s lineup—or, wasn't. The company has already ended production of the full-size Maxima and is expected to phase out the mid-size Altima around 2027. Still, Espinosa believes there’s a future for sedans in the lineup. He notes:

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'I think there's still space for sedans. Sentra is a very good product, and it has also moved up. So it's kind of playing in the lower area of what Altima used to be. So for the moment, we continue looking at the market to see how it looks… Maybe something under or the price of a Kicks would make sense. But looking at the context today, as we said before, tariffs, the way they are, it’s a bit difficult to execute a program like that.'

Motor1's Take: Espinosa’s comments suggest Nissan still sees potential for affordable sedans in the U.S., particularly at the lower end of the market. For now, however, tariffs on Mexican-built vehicles make it difficult to justify bringing back something like the Versa.

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