Nissan is pulling back in Mexico. In a move that has sent ripples through the global automotive industry, the Japanese automaker has confirmed the closure of two of its major manufacturing plants in Mexico—CIVAC in Cuernavaca and the COMPAS facility in Aguascalientes. These closures are part of Nissan’s broader “Re:Nissan” global restructuring strategy, aimed at streamlining operations, cutting costs, and adapting to shifting market demands.
A Strategic Shift: From Expansion to Consolidation
For decades, Mexico has been a cornerstone of Nissan’s North American manufacturing footprint. The CIVAC plant, opened in 1966, was Nissan’s first manufacturing facility outside Japan and played a pivotal role in the company’s global expansion. The COMPAS plant, a joint venture with Daimler (Mercedes-Benz), was launched in 2017 to produce premium vehicles like the Infiniti QX50, QX55, and the Mercedes-Benz GLB.
However, the tides have turned. Nissan has announced that production at the COMPAS plant will cease by early 2026, with Infiniti models ending production as early as November 2025. The CIVAC plant will remain operational until March 2027, after which it will shut down completely.
Why the Closures?
The decision to shutter these facilities is driven by a confluence of factors:
- Declining global sales: Nissan, like many automakers, has faced a downturn in global vehicle demand, particularly in the premium segment. The Infiniti brand has struggled to gain traction in key markets, prompting a reevaluation of its manufacturing strategy.
- Overcapacity: With more production capacity than demand, Nissan is consolidating operations to improve efficiency. The company plans to shift production to its more modern and scalable Aguascalientes plant, which will absorb some of the output from the closing facilities.
- Changing consumer preferences: The global pivot toward electric vehicles (EVs) and SUVs has rendered some existing production lines obsolete. Nissan is reallocating resources to focus on electrification and next-generation mobility solutions.
- Dissolution of partnerships: The COMPAS plant was originally a symbol of collaboration between Nissan and Daimler. However, the partnership has since cooled, and Mercedes-Benz is expected to end GLB production at the facility by Q1 2026.
Economic and Workforce Impact
The closures will have significant implications for Mexico’s automotive sector. Thousands of workers at the CIVAC and COMPAS plants face job uncertainty, and local suppliers and logistics networks will also feel the ripple effects. While Nissan has not disclosed exact job loss figures, the economic impact on regions like Cuernavaca and Aguascalientes could be substantial.
That said, there is some hope. Reports suggest that Chinese automakers have expressed interest in acquiring or repurposing the CIVAC facility, potentially preserving some level of industrial activity in the area.
A Broader Industry Trend?
Nissan’s retreat from Mexico is not an isolated event. It reflects a broader trend in the global automotive industry, where manufacturers are reassessing their footprints in response to:
- Supply chain disruptions, including semiconductor shortages and geopolitical tensions.
- The shift to EVs, which requires retooling and new investments in battery production and software development.
- Cost pressures, prompting companies to consolidate operations and focus on high-margin models and markets.
Other automakers, including Ford and Honda, have also scaled back production in Mexico in recent years, citing similar challenges.
What’s Next for Nissan?
Nissan’s focus now shifts to its Aguascalientes plant, which will become the company’s primary manufacturing hub in Mexico. The facility is expected to handle increased production volumes and may play a key role in Nissan’s EV strategy for the Americas.
Meanwhile, the company continues to invest in innovation and electrification, with plans to launch several new EV models globally by 2030. The restructuring in Mexico is part of a larger effort to position Nissan for long-term competitiveness in a rapidly evolving market.
Final Thoughts: A Turning Point for Mexican Manufacturing?
The closure of two flagship Nissan plants marks the end of an era for Mexico’s automotive industry. While it underscores the volatility of global manufacturing, it also opens the door for new players and possibilities. Whether through foreign investment, EV-focused redevelopment, or new partnerships, the future of these facilities—and the workers who powered them—remains unwritten.