Nissan to close down its first-ever overseas production plant

Nissan has previously announced a sweeping global restructuring plan called Re:Nissan, aimed to restore profitability for the storied Japanese brand. Those included the slashing of global production volumes. And with it, the reduction of manufacturing sites.

Speaking of which, the latter have been making the headlines as Nissan confirmed they will cease production at its historic Oppama plant, as well as Nissan Shatai’s Shonan factory in Japan. Now, they have revealed the next production plant that’s set to turn its lights off.

Nissan will be ceasing operations at the CIVAC plant in Morelos, Mexico by the end of fiscal year 2025. It was the Japanese automaker’s first factory outside Japan when they were expanding their operations during the 60s.

The Nissan CIVAC plant produced more than 6.5 million vehicles since it first began operations in 1966, delivering Nissan vehicles not only in Mexico but also to various parts of the world. Currently, the CIVAC plant produces the NP300 Navara, Frontier, and Versa, and comprises 11% of Nissan’s total production in Mexico.

"For over 60 years, Nissan Mexicana has built a strong and trusted relationship with its stakeholders in Mexico, earning global recognition as one of the company’s flagship operations. Today, we have made the difficult but necessary decision, that will allow us to become more efficient, more competitive, and more sustainable. Throughout this transition, we remain deeply appreciative of the invaluable contributions made by our collaborators at the CIVAC Plant. Their dedication over the years has been instrumental to our success. I take this opportunity to reaffirm our commitment to our employees, customers, and to Mexico, which remains a strategic pillar for our company.” Said Nissan CEO Ivan Espinosa.

Under Re:Nissan, the brand aims to maintain a utilization rate of around 100%, and that aligns with Nissan’s plan to transition all vehicle production in Mexico to the Aguascalientes plant. This will centralize the manufacturing of both current and future models, making more efficient plant operations.