Like everyone else, Nissan is trying to strike the right balance between consumer appetite, regulatory requirements, and profitability. New models and redesigned models don't just happen overnight, so satisfying those three at any given time becomes quite the challenge as they have to plan years in advance. As someone in another forum posted, I'm glad Nissan discontinued the Xterra rather than live on as some neutered version of its former self (see: Pathfinder). No doubt we have the Juke to thank for fulfilling the crossover segment so well.
Unfortunately, regulatory requirements are beginning to significantly overrule consumer appetite. Toyota saw the costs associated with adapting the FJ to meet the upcoming regulatory requirements and, given the limited consumer appetite, decided it was more financially sound to discontinue the model. Nissan tried to soldier on a few more years with the Xterra, but the writing was certainly on the wall. As one report mentioned, Nissan has no other SUVs in development to replace the Xterra, so clearly Nissan can't see profitability in the SUV segment.
My only hope is that some of these manufacturers continue making a reasonable enough amount of legitimate SUVs destined for places with more relaxed regulatory standards, which would at least provide the option of acquiring the vehicle through private import. Although, with Land Rover finally calling an end to the Defender after 67 years of continuous production, that hope, too, is fading.
