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Nissan’s plant in Mexico is facing imminent closure. Image credit: Motor1. |
According to Motor1, Nissan is facing significant challenges, and its new CEO is taking drastic measures to turn the company around.
Last week, Nissan announced the closure of its Oppama plant in Japan from March 2028. This is one of seven Nissan plants that will be shut down, and Motor1 reports that the remaining closures could include two production facilities in Mexico.
Automotive News, citing internal sources, revealed that Nissan will close its Civac plant from March 2027. The Civac plant has been operational for almost six decades and is Nissan’s first factory outside of Japan. It currently produces the Navara and Frontier models for the Latin American market.
In a statement to Autonews, a Nissan spokesperson acknowledged that no final decision has been made on which plant will be next to cease operations.
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Nissan’s Civac facility in Mexico has been operational for six decades. Image credit: Motor1. |
Reports also indicate that Nissan will end its collaboration with Mercedes-Benz early next year, as it completes production of the Infiniti QX50 and QX55 crossover models at the Compas facility. Nissan previously confirmed that production of these two models would cease in December.
In addition to closing seven production facilities to reduce the number of active plants to ten, Nissan aims to cut its production capacity by 30% by 2027 and reduce its workforce by 20,000.
Back in May, Nissan announced that it would halt the development of certain vehicle models and reallocate staff to focus on cost-cutting initiatives, even as the Japanese automaker strives to expedite the launch of next-generation vehicles.
The new Nissan CEO has a challenging task ahead to rescue the beleaguered Japanese automaker.
Earlier this month, a report suggested that Nissan could produce Honda-branded pickup trucks at its Mississippi plant in the US. This move would help Honda circumvent President Donald Trump’s new tariffs on imported vehicles while allowing Nissan to maximize its plant capacity.
Nissan is executing a restructuring plan called Re:Nissan, and if all goes according to plan, the Japanese automaker could save up to $3.4 billion in costs. Motor1 notes that this plan follows Nissan’s net loss of $4.5 billion in 2024.
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