Layoffs begin at three Nissan plants, the automaker confirms

The layoffs that Nissan planned at three assembly plants in Aguascalientes and Cuernavaca has already started with a first group of employees that was dismissed last week, the Japanese automaker confirmed in a statement.

This process, which will affect 1,000 workers in total, is expected to continue throughout the first quarter of 2019.

Last December the company announced this plan to readjust production volumes, in response to new market conditions, mainly in Mexico and the United States.

Herman Morfin, director of Corporate Communications, reported that the “workforce adjustment” includes the two plants in Aguascalientes (A1 and A2), as well as the Cuernavaca facility (CIVAC), but excludes the COMPAS production site in Aguascalientes, where the Infiniti QX50 is built.

“The company confirmed the need to take this difficult decision given the decline in the Mexican automotive industry, resulting from various external factors including increases in raw material costs, among others,” Morfin said.

Total auto sales in the domestic market decreased 7.1% in 2018 as compared to 2017. Nissan, however, reported a 14.4% drop in deliveries, while domestic production declined 8.1% in 2018.

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