It's just a fact of life that the SUV segment isn't what it used to be.
When the Nissan Xterra launched back in 1999, it was heralded for being a smart, affordable, and rugged SUV. It had solid sales and a redesign in 2005 that made a winning formula even better. But today there’s a downside to the Xterra: it’s an SUV that drinks a lot of gasoline. Despite a loyal following, the Xterra has been experiencing slow sales lately due to poor fuel economy and the fact Nissan has failed to do any serious updates to it since its second-generation redesign more than eight years ago.
That’s an eternity in the car industry and since then the crossover craze has spread like wildfire. And like the Toyota FJ Cruiser, Nissan may soon kill off the Xterra for obvious reasons. So will Nissan simply replace this old school body-on-frame SUV that gets only 16 mpg? Nissan’s VP of product planning for North America, Pierre Loing, said that "There are plans to replace it, there are always plans (but) I am not sure it will happen." Another factor here is that the Xterra is a US-only model, and it’ll be a hard business case to make when Nissan is currently making the shift towards a more globalized model lineup. The decision will be made in 6 to 12 month's time.