by Nissan Closes Plant in Mexico
Japanese automaker Nissan plans to close its Civac plant in Mexico by 2027. This was the company’s first enterprise opened outside Japan almost 60 years ago. The plant in the city of Jiutepec produces Navara and Frontier pickups for the Latin American market, but their production will be moved to another Mexican plant in Aguascalientes. According to Auto News, this year Civac will produce only 57 thousand vehicles, which is five times less than a decade ago.
The plant closure is linked to Nissan’s financial difficulties and high tariffs on imports from Mexico to the USA. Besides Civac, the company plans to close six more plants in various countries by 2027. However, Nissan’s American enterprises will continue to operate.
An Opportunity for Chinese Brands
After the closure of Civac, thousands of workers may be left without jobs, but there is a possibility that the plant will find a new owner. Chinese automakers looking for an opportunity to enter the North American market may be interested in the ready infrastructure and experienced personnel.
Nissan is also seeking partners in the automotive industry after failed merger talks with Honda. Although the deal did not happen, the companies continue to collaborate on the development of new technologies that may appear in their cars by the end of the decade.
These changes are taking place against the backdrop of a global transformation of the auto industry, where manufacturers are forced to adapt to economic challenges, changes in demand, and political decisions affecting logistics and costs. For Nissan, this is a difficult period, but the company is trying to optimize its operations to remain competitive in the international market.
