Flailing car brand will shut giant factory FOREVER after slumping to £40million loss and cutting 2,400 jobs
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A HUGE car brand has accelerated plans to shut one of its giant factories after facing a quarterly loss of £40 million ($53 million).
The closure comes as the firm desperately tries to balance its books, in a scheme which could see 20,000 jobs cut worldwide.
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A major car brand has announced plans to accelerate a factory's closure
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The company has been battling with rising debts
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Nissan has been battling with rising costs and mounting debt in recent years, forcing the struggling car brand to reconsider its international strategy.
The company originally said that two of its factories in Mexico would be closing in a bid to slash costs.
Despite saying that the Civac Plant in Morelos and the Cooperation Manufacturing Plant Aguascalientes (COMPAS) were slated to close in 2027, the company has now accelerated plans to shutter the Civac factory.
The site will now close in 2026 and production will be moved from the site to the Auguascalientes factory - which is 300 miles away - on July 26.
Ahead of the closure, Nissan CEO Ivan Espinosa said in a statement: '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.'
The Navara and Latin America Frontier pickups are produced at the Civac site.
Final days for Nissan drivers to claim $5k from 'defect' settlement – you can get multiple payouts by filling in form
The news comes as the car brand battles with mounting debt and a huge $4.5 billion net loss.
The company is also looking at a huge $4.5 billion in debt.
However, the British Government threw a lifeline to Nissan, when UK Export Finance underwrote a £1 billion loan to keep the company afloat.
The firm is looking to trim its number of factories down from 17 to just 10.
As a result, the total job losses worldwide could number as high as 20,000.
The UK government hopes the lifeline will protect thousands of jobs at the Sunderland factory.
Nissan has also announced plans to close its flagship factory in the Kanagawa Prefecture, south of Tokyo.
Nissan has been battling with falling vehicle sales in China, huge restructuring costs and US President Donald Trump's international tariff war.
Trump's tariffs have raised the cost of importing vehicles, causing car sales of many different brands to nosedive across the world.
As a result, international car brands have been struggling as the cost of exporting soars.
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