Nissan to Shut Two Mexico Plants in Cost-Cut Plan

Nissan will close two of its manufacturing plants in Mexico—CIVAC in Cuernavaca, Morelos, and COMPAS in Aguascalientes—as part of its global restructuring strategy, Re:Nissan. The decision was confirmed by two sources involved in the process, according to Automotive News.

The COMPAS facility (Cooperation Manufacturing Plant Aguascalientes), a joint venture between Nissan and Mercedes-Benz, will cease operations in early 2026. Nissan will end production of its Infiniti QX50 and QX55 models by the end of 2025, while Mercedes-Benz will stop producing the GLB model in the first quarter of 2026. This will conclude a joint manufacturing effort that began nearly a decade ago.

CIVAC will remain operational until March 2027. Opened in 1966, it was Nissan’s first manufacturing plant outside Japan. The facility currently produces the NP300 pickup (also known as the Frontier or Navara in other markets) and the Nissan Versa in smaller volumes. Production is expected to be consolidated at Nissan’s remaining plants in Aguascalientes—A1, A2, and its Powertrain engine plant.

These closures are part of the broader Re:Nissan plan, announced in May 2024, aimed at consolidating global operations and reducing costs amid ongoing economic challenges. The plan calls for the closure of seven out of Nissan’s 17 manufacturing plants worldwide and the elimination of up to 20,000 jobs by 2027. Closures in Oppama (Japan), Córdoba (Argentina), and an undisclosed location in India have already been confirmed.

In response to inquiries from El Economista, Nissan stated: “This process has not concluded, except for the three plants already announced (Japan, Argentina, and India). We are committed to maintaining transparency with our stakeholders, and if a decision is made, we will inform accordingly.” The company emphasized that Re:Nissan is focused on “rebuilding and renewing the company,” which includes evaluating its global production footprint.

CIVAC’s closure marks the end of an era for Nissan in Latin America. The plant has been a cornerstone of its regional operations for more than six decades. Previously, Nissan had announced plans to consolidate production of its Frontier/Navara pickups—currently assembled in both Mexico and Argentina—at CIVAC, beginning in January 2026.

However, the latest report suggests that strategy has shifted. Production is now expected to be relocated to the Aguascalientes plants. This move aligns with Nissan’s broader objective of concentrating production at more cost-effective and technologically advanced facilities.