Nissan Mexicana to Lay Off 562 Employees at Morelos Plant
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Nissan Mexicana to Lay Off 562 Employees at Morelos Plant

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Antonio Gozain By Antonio Gozain | Senior Journalist and Industry Analyst - Mon, 01/17/2022 - 16:22

Nissan Mexicana will dismiss a total 562 workers from its plant in Cuernavaca, Morelos, in various stages, beginning on Jan. 20, 2022. This action follows the production move of Versa and V-Drive from CIVAC Morelos to Aguascalientes plant 1.

Although production of NP300 and Frontier pick-ups at CIVAC’s line 2 will continue normally, Nissan will lay off its first 183 workers on Jan. 20, 2022, as part of its NEXT rationalization plan amid semiconductor shortages. On Jan. 28, 2022, the next 142 employees will be fired, on Feb. 4, 2022 another 142 and by Feb. 11, 2022, the last 95 workers will be laid off, reported Milenio.

"At Nissan Mexicana we maintain our commitment to the Mexican market to offer an optimized and quality portfolio for customers and distributors. We are transferring production of Versa and V-Drive to Aguascalientes, concluding with production of line 1 at our CIVAC plant. Line 2 will continue working at this important plant, which produces the renewed pick-ups NP300 and Frontier, exported to 20 countries,” said Nissan Mexicana. Besides Versa and V-Drive, CIVAC’s line 1 used to produce NV Cargo and NV for passengers, which were sold mainly in the US.

In 2019, with a US$278 million investment, Nissan decided to manufacture Versa in both Cuernavaca and Aguascalientes. While CIVAC plant’s production was destined for the Mexican market, Aguascalientes manufactured Versa for over 88 international markets, reported El Economista.

Despite semiconductor shortages, Versa production saw a 5-percent growth in 2021 when compared with 2020, with 137,084 units. Exports grew 43.7 percent between Jan. 2021 and Nov. 2021, with 86,409 units, compared with the 60,149 units exported in the same period of 2020. Domestic Versa sales increased by 12 percent in 2021, with 59,844 units, reported El Economista.

Nissan’s history in Mexico began in 1959, when it arrived in the country commercializing Datsun vehicles. In September 1961, it was officially constituted as Nissan Mexicana. The initial success of the Japanese automaker in Mexico and its strategic location close to the US, fostered Nissan’s decision to open its first plant outside Japan in Cuernavaca, Morelos, on May 12, 1966, boosting the automaker’s globalization strategy. The Datsun Bluebird sedan became the first vehicle manufactured at CIVAC, with a production of 10,510 units from 1966 to 1968.

Nissan Mexicana Linked 12 Years Dominating the Market

Despite shortages and supply chain disruptions, Nissan Mexicana entered 2022 as the domestic sales leader for the 12th uninterrupted year, reported MBN.

"This has been a relevant year for Nissan. We have been present in the country for 60 years and we set the milestone of 12 uninterrupted years as a benchmark in customer preference by remaining in the first position in sales nationwide. From Jan. 2021 to Nov. 2021, we sold 186,485 vehicles and kept our leading position with a 20.3 percent market share," said Gerardo Fernández, Senior Director of Sales, Nissan Mexicana.

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