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Why Nissan Is Dropping America’s Cheapest New Car

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Nissan is officially pulling the plug on the five-speed manual Versa, ending the production of the U.S.’s most affordable new car, according to Car And Driver. The 2025 Nissan Versa with a manual transmission had a starting price of just $17,190, but a mix of challenging tariffs and sluggish sales spelled the end for this model.

Autoblog reported that the Versa has been a staple of Nissan’s U.S. lineup since 2006. The manual version, built in Aguascalientes, Mexico, was one of three models produced there for the U.S. market, alongside the Sentra and Kicks. However, only 5% of the 42,589 Versas sold last year were manual versions. Now, Nissan says it will focus on higher-selling trims that are more aligned with customer preferences.

The decision comes after news of big layoffs as 25% tariffs on auto imports from Mexico threaten to add around $4,500 to the Versa’s base price, undermining its value. Even after adding a $1,140 shipping charge, the manual Versa was priced at just $18,330, significantly undercutting the CVT version’s $20,130 sticker. Still, the impact of tariffs and thin profit margins proved too much for Nissan.

Related: Nissan to Slash 20,000 Jobs Globally. Here’s What U.S. Workers Can Expect

Despite its modest power from a 1.6-liter 4-cylinder engine, the manual Versa was a practical choice, delivering 30 combined MPG, standard safety tech, and ample cargo space. But with competitors like the Mitsubishi Mirage G4 also bowing out in 2024, affordable cars with manual transmissions are fading fast.

Related: The Tiny Part That Threatens to Bring U.S. Automakers to a Halt

Today’s drivers wanting a new manual transmission car will have to shell out over $30,000 for models like the Ford Bronco, Honda Civic Si, or Toyota GR Corolla. While the Versa’s disappearance may not shake the market due to its low sales, it’s a sign of shifting tides in both consumer demand and automotive economics. 

Nissan’s decision highlights the struggle to balance cost, consumer preferences, and global trade pressures—factors reshaping the future of affordable cars.

Related: The Unexpected Issue Tesla’s New Release is Facing

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