Nissan to Close CIVAC Plant, Shift Output to Aguascalientes

Nissan will transfer all vehicle production in Mexico to its Aguascalientes manufacturing complex by the end of fiscal year 2025, effectively shutting down operations at its CIVAC plant in Morelos. The move is part of the automaker’s global restructuring strategy, “Re:Nissan”, aimed at optimizing production capacity and increasing efficiency across its global manufacturing footprint.

The closure of the CIVAC plant, which has operated since 1966, marks a significant shift in Nissan’s regional strategy. The site was the company’s first production facility outside of Japan and has produced more than 6.5 million vehicles over its lifetime. As of 2024, CIVAC accounts for approximately 11% of Nissan’s total production in Mexico and manufactures models such as the NP300, Frontier, and Versa. These models will continue to be assembled in Aguascalientes.

Nissan’s decision aligns with its broader objective to reduce global production capacity from 3.5 million to 2.5 million units and streamline its manufacturing  footprint from 17 to 10 facilities, with the goal of achieving a plant utilization rate closer to 100%. 

“This was a difficult but necessary decision that will allow us to become more efficient, competitive, and sustainable. We deeply appreciate the invaluable contributions of our employees at the CIVAC plant. Their dedication has been fundamental to our success. I want to reaffirm our commitment to our employees, customers, and to Mexico, which remains a strategic pillar for our company,” said Iván Espinosa, CEO, Nissan.

As part of its manufacturing realignment, Nissan previously relocated production of the Frontier pickup from Argentina to Mexico. This shift follows recent announcements of plant closures in Argentina, Japan, and India.

In 1H25, Nissan produced 340,530 vehicles in Mexico across its Aguascalientes and Morelos plants, representing a 0.3% increase year-over-year. However, exports declined by 4%, totaling 228,974 units.

The company did not provide detailed cost estimates associated with the consolidation, noting only that these are under evaluation. Nissan stated it will work to ensure the transition occurs under the best possible conditions and intends to maintain respectful engagement with affected workers in Morelos.

“Nissan will guarantee that this transition is carried out under the best possible conditions, always aiming to maintain a respectful relationship with the affected employees in Morelos,” the company said in a statement. 

Earlier this week, representatives of Mexico’s automotive industry—including the National Auto Parts Industry (INA), the Mexican Automotive Industry Association (AMIA), and the Mexican Supplier Development Committee (CAPIM)— initially denied Nissan’s plant closure. They cited the historical relevance of the CIVAC plant and asserted that the company would not exit Mexico.