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Automaker That Led The Latin American Market For Decades Ceases Operations and Fires Thousands

Written by Bruno Teles
Published on 03/08/2025 at 19:33
Encerramento de unidade da Nissan pode colapsar economia local e afetar 11% da produção no México
Encerramento de unidade da Nissan pode colapsar economia local e afetar 11% da produção no México
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Historic Japanese Automaker Unit in Mexico to Be Closed by 2026 as Part of Global Plan to Cut Costs and Streamline Production

The automaker Nissan announced that it will close its first factory opened outside Japan, located in Mexico. The Cuernavaca plant, in the CIVAC industrial park, will cease operations by March 2026 as part of the global restructuring plan called Re:Nissan, which involves closing seven factories worldwide.

The closure of the unit comes shortly after the announcement of the shutdown of the Oppama factory in Japan. The automaker aims to reduce its global production capacity from 3.5 million to 2.5 million vehicles per year and consolidate operations in fewer factories with higher utilization rates.

Which Nissan Factory Will Be Closed?

The affected unit is the Cuernavaca (CIVAC) plant in Mexico, inaugurated in 1966. It was Nissan’s first factory outside Japan and currently produces the Frontier, NP300/Navara, and Versa models. With nearly 60 years of operation and 410,000 m², the factory has manufactured over 6.5 million vehicles throughout its history.

Production will be transferred to Aguascalientes, where Nissan already operates another industrial unit. The closure of CIVAC affects about 11% of the brand’s Mexican production.

Why Did the Automaker Decide to Close the Plant?

According to the company, the goal is to increase operational efficiency. Nissan intends to reduce the number of factories worldwide from 17 to 10, concentrating production in units with full capacity. The closure also responds to the need to cut costs amid a deep financial restructuring.

The plan includes redirecting investments, temporarily suspending new vehicle projects, and closing unprofitable partnerships, such as the joint venture with Mercedes-Benz at the COMPAS plant, also in Mexico.

Which Countries Could Be Next?

In addition to Japan and Mexico, factories in Thailand, India, Argentina, and South Africa are under review, according to information from the Reuters agency. The number 1 unit in Thailand has already confirmed its closure. There are also rumors about the sale of Nissan’s headquarters in Yokohama, with a possibility that the company will operate in the building as a tenant.

The plan also includes the relocation of 3,000 Research and Development employees to propose cost-saving solutions. So far, more than 1,600 ideas are in advanced implementation stages.

How Many Jobs Are at Risk?

According to the Japanese broadcaster NHK, cuts could affect up to 20,000 jobs worldwide, more than double the 9,000 layoffs already announced in 2024. Nissan hopes that Re:Nissan can reverse losses and restore global competitiveness.

The strategy also includes strengthening the alliance with Renault and Mitsubishi, renewing its vehicle lineup, and rebranding Infiniti. The plan is described by the automaker itself as a total recovery initiative, after years of unstable results.

Do you think closing historic factories is the right path to save an automaker? Is Nissan repositioning itself or just cutting losses? Leave your opinion in the comments—your perspective matters in this global debate.

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Caio Azevedo
Caio Azevedo
04/08/2025 19:53

Acho que os carros no Brasil estão fora do alcance . Como pode um Kwid custar $60 mil , tá de brincadeira. Ônix $80 é carros tipo Suv com valores de um Apto ou casa . Hoje no Brasil o custo de vida muito alto

Pablo Santos
Pablo Santos
Reply to  Caio Azevedo
05/08/2025 13:24

Esses preços aí só se forem de seminovos. Kiwdsgraça é 78k o de entrada, já o Onix com sua famosa correia banhada a óleo a partir de 90k. Isso por enquanto se o desgoverno do **** não meter mais um imposto até o fim do ano.

Marks
Marks
Reply to  Caio Azevedo
05/08/2025 16:28

Se vc olhar o quanto desses valores são impostos, vc irá entender esse preços.

Gilberto
Gilberto
04/08/2025 19:43

As montadoras chinesas vieram trazer um novo modelo, que impactou os custos de produção e agora as outras montadoras se vêem obrigadas a se reestruturar.

R. Martins
R. Martins
04/08/2025 14:35

O México resolveu apostar em uma Presidente Socialista /Comunista posta lá pelo cartel de Los Soles, o maior conglomerado Narcotraficante do mundo.
O segundo é o PCC.
Assim que o governo americano impôs tarifas sobre o desgoverno cocaleiro do México, as fábricas começaram a fechar assim como estão fechando no Brasil.
Quer o Comunismo então abraça o capeta.

Vitor
Vitor
Reply to  R. Martins
04/08/2025 17:27

Vai dormir maluco

Erik
Erik
Reply to  R. Martins
04/08/2025 19:29

Comentário de um ****

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Bruno Teles

I cover technology, innovation, oil and gas, and provide daily updates on opportunities in the Brazilian market. I have published over 7,000 articles on the websites CPG, Naval Porto Estaleiro, Mineração Brasil, and Obras Construção Civil. For topic suggestions, please contact me at brunotelesredator@gmail.com.

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