Nissan announces closure of its plant in Morelos

Nissan Motor announced the closure of operations at its CIVAC plant in Jiutepec, Morelos, due to global restructuring measures by the Japanese automaker.

The Japanese brand explained that it will transfer vehicle production to the Aguascalientes complex. In recent days, President Claudia Sheinbaum stated that they had not yet been notified of a possible closure of the Nissan plant in the state of Morelos.

This is the first closure implemented by Nissan outside of Japan, amid the global crisis it is facing.

"The company had made a difficult decision, but one that is necessary to enable us to be more efficient, competitive, and sustainable," Nissan CEO Iván Espinosa.

He added that the company will transfer all vehicle production in Mexico to the Nissan complex in Aguascalientes during fiscal year 2025.

In the statement, the automaker explained that it decided to keep the Aguascalientes plant open because the complex has advanced equipment and state-of-the-art resources, which will enable it to boost production efficiency and logistics while supporting sustainable growth.

Following this announcement, Nissan's vehicle production at the Morelos plant will be shut down for the remainder of the year.

The company added that it will now centralize the manufacturing of current and future models in Aguascalientes, taking advantage of the logistical benefits offered by the El Bajío region.

Nissan Motor plans to close two factories in Japan and reduce operations in four other countries as part of its restructuring and cost-cutting strategy, according to the Japanese newspaper Yomiuri.

The Japanese company is facing a global decline in sales and profitability, pressured by competition from Chinese electric vehicle manufacturers and a decline in sales volume in the United States, one of its main markets.

In this context, Nissan recently announced the closure of seven production plants worldwide by 2027 and a reduction of up to 20,000 jobs by the same date, although it did not specify the locations affected.

Among the Japanese facilities mentioned by Yomiuri are the Oppama and Hiratsuka plants, managed by subsidiary Nissan Shatai Co. and responsible for approximately 30% of domestic production.
The Oppama plant, with an annual capacity of 240,000 vehicles, specializes in electric models such as the Leaf and Note, while Hiratsuka produces commercial vehicles with a capacity of 150,000 units.

In addition, the company is evaluating the closure of two factories in Mexico and the cessation of production in India, Argentina, and South Africa.