Latest news with #COMPAS
The Sun
5 hours ago
- Automotive
- The Sun
Flailing car brand will shut giant factory FOREVER after slumping to £40million loss and cutting 2,400 jobs
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. 3 3 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. 3
Scottish Sun
22-07-2025
- Automotive
- Scottish Sun
Crisis-hit car brand ‘to close another two major plants' – days after shutting flagship factory with 2,400 workers
The brand says that closing its flagship plant was a 'tough' decision SHARP TURN Crisis-hit car brand 'to close another two major plants' – days after shutting flagship factory with 2,400 workers A STRUGGLING car brand will reportedly close another two major plants - days after shutting a flagship factory. The brand is planning to close the plants down as part of its huge global restructuring plan. Advertisement 3 A major car brand is closing several of its production plants Credit: Getty 3 Two plants will be closed in Mexico Credit: Getty Nissan has been battling with rising debt and manufacturing in recent years, forcing the company to desperately re-evaluate its business strategy. The company launched its Re:Nissan initiative, in which it is earmarking factories across the world for closure. Now, according to Automotive News,, Nissan is has earmarked two factories in Mexico for closure. Nissan is planning to close its Civac plant in Morelos and the Cooperation Manufacturing Plant Aguascalientes (COMPAS) plant in Aguascalientes. Advertisement Both factories are set to close by 2027, putting thousands of jobs at risk. The Civac plant has been producing cars since 1966 and was the very first international manufacturing site that Nissan ever owned. It currently produces the South American version of the Frontier, the N18 Versa and the Mexico-only V-Drive. Meanwhile, COMPAS was only opened 10 years ago as a collaboration between Mercedes-Benz and Nissan. Advertisement The plant produced the Mercedes GLB in 2019, the Infiniti QX50 in 2017, and the QX55 in 2021 - all of which are set to end production. The Sun have approached Nissan for comment about the closure. Final days for Nissan drivers to claim $5k from 'defect' settlement – you can get multiple payouts by filling in form The news comes after Nissan closed its flagship factory in the Kanagawa Prefecture south of Tokyo. The factory will close at the end of the 2027 fiscal year in March 2028. Advertisement Over 2400 jobs will be lost in the closure, which Nissan says was a 'touch but necessary decision'. Chief Executive Ivan Espinosa said: 'I believe it's a vital step toward overcoming our current challenges and building a sustainable future. 'The world is changing by the minute.' The car manufacturer is planning to reduce its 17 plants down to just 10. Advertisement 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.
The Sun
22-07-2025
- Automotive
- The Sun
Crisis-hit car brand ‘to close another two major plants' – days after shutting flagship factory with 2,400 workers
A STRUGGLING car brand will reportedly close another two major plants - days after shutting a flagship factory. The brand is planning to close the plants down as part of its huge global restructuring plan. 3 Nissan has been battling with rising debt and manufacturing in recent years, forcing the company to desperately re-evaluate its business strategy. The company launched its Re:Nissan initiative, in which it is earmarking factories across the world for closure. Now, according to Automotive News,, Nissan is has earmarked two factories in Mexico for closure. Nissan is planning to close its Civac plant in Morelos and the Cooperation Manufacturing Plant Aguascalientes (COMPAS) plant in Aguascalientes. Both factories are set to close by 2027, putting thousands of jobs at risk. The Civac plant has been producing cars since 1966 and was the very first international manufacturing site that Nissan ever owned. It currently produces the South American version of the Frontier, the N18 Versa and the Mexico-only V-Drive. Meanwhile, COMPAS was only opened 10 years ago as a collaboration between Mercedes-Benz and Nissan. The plant produced the Mercedes GLB in 2019, the Infiniti QX50 in 2017, and the QX55 in 2021 - all of which are set to end production. The Sun have approached Nissan for comment about the closure. Final days for Nissan drivers to claim $5k from 'defect' settlement – you can get multiple payouts by filling in form The news comes after Nissan closed its flagship factory in the Kanagawa Prefecture south of Tokyo. The factory will close at the end of the 2027 fiscal year in March 2028. Over 2400 jobs will be lost in the closure, which Nissan says was a 'touch but necessary decision'. Chief Executive Ivan Espinosa said: 'I believe it's a vital step toward overcoming our current challenges and building a sustainable future. 'The world is changing by the minute.' The car manufacturer is planning to reduce its 17 plants down to just 10. 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. 3
Motor Trend
22-07-2025
- Automotive
- Motor Trend
Report: Nissan Closing Two More Production Plants By 2027
With Nissan in dire straits, the Japanese brand has been reaching for every avenue to save itself through the 'Re:Nissan' initiative. Recently, word came down on July 15 that its Oppama plant in Kanagawa, Japan, would shut down and production there would move to Kyushu (in Fukuoka, Japan) by early 2027. Now, a new report suggests is that two of Nissan's Mexico plants will shutter in the same timeframe with no word on where the vehicles built there will be assembled in the future. Nissan plans to close its Civac and COMPAS plants in Mexico by 2027 as part of its "Re:Nissan" initiative to reduce global production sites. The move follows the closure of the Oppama plant in Japan and aims to cut plant numbers from 17 to 10 to avoid financial issues. This summary was generated by AI using content from this MotorTrend article Read Next The Oppama news sent shockwaves because it was Nissan's flagship plant and builds the Nissan Note and the Aura. Now, as Automotive News reports, the Civac plant located in Morelos and the Cooperation Manufacturing Plant Aguascalientes (COMPAS) plant in Aguascalientes, Mexico, are the next two facilities on the early 2027 chopping block. Civac was the first international plant Nissan had owned and first opened in 1966. According to the Automotive News report, the 60-year-old plant is outdated and would require a large sum of cash to bring it up to date. Currently, this plant is producing the South American version of the Frontier (as the NP300, NP300 Navara, or the NP300 Frontier), the Mexico-only V-Drive based on the N17 Versa, and the current N18 Versa that is sold in the U.S. This isn't the first time that Civac has been rumored to be closing, as there was speculation back in May about its demise, but Nissan denied the rumor then. According to that same Automotive News report, Chinese automotive manufacturers BYD and SAIC are eyeing the plant to gain production capacity in North America. COMPAS, on the other hand, was opened just 10 years ago as a joint venture between Nissan and Mercedes-Benz. This was the plant that produced the Mercedes GLB in 2019, the Infiniti QX50 in 2017, and the QX55 in 2021. All three vehicles are slated to end production with Infiniti pausing new orders on the QX50/55 back in April and production slated to close later this year citing Trump administration tariffs on non-U.S.-built vehicles. The Mercedes GLB will end production in the first quarter of 2026 with a new generation architecture moving to the MMA and rumored to move production to the U.S. We reached out to Nissan to confirm this story, and received this response: 'Under Re:Nissan, Nissan is currently reviewing the integration and closure of some of its global production sites. However, this process has not yet been concluded beyond the three sites that have been announced so far. We are committed to maintaining transparency with our stakeholders and if any decisions are made, we will provide information at the appropriate time.' The three plants Nissan is referring to are the recently announced Oppama plant in Japan, the closing of one Thailand plant by consolidating its two plants in Samat Prakan province, and an unnamed third plant. The goal of Re:Nissan is to reduce its plant count from 17 to 10 to become a solvent company and not risk bankruptcy to reduce its financial burdens.
Yahoo
22-07-2025
- Automotive
- Yahoo
Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move
Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move originally appeared on Autoblog. Nissan may say adiós to two Mexican facilities, says report According to a new report from Automotive News, Japanese automotive powerhouse Nissan is planning to reduce its manufacturing capacity in Mexico next year by shuttering two of its plants, including one that was opened as a joint venture with German luxury automaker Mercedes-Benz. Per two sources, Nissan is expected to shut down the Civac plant in Jiutepec, Mexico, no later than March 2027, at the end of its 2026-2027 fiscal year. Like other Japanese automakers, Nissan follows a traditional fiscal year pattern known as nendo (年度), which runs from April 1 to March 31 the following year. In addition, Nissan is reportedly set to end its joint venture with Mercedes on crossover production at the 2.37 million-square-foot COMPAS factory in Aguascalientes, Mexico. According to AutoForecast Solutions, Nissan will end production of two Infiniti crossovers at the plant later this year, while Mercedes will halt GLB production during the first quarter of 2026. Nissan's first overseas factory may be on the chopping block Like the soon-to-be-shuttered Oppama plant in Japan, the 4.4-million-square-foot CIVAC factory has some historical provenance with Nissan. The Jiutepec, Mexico, facility has been making cars in Mexico since 1966, just five years after it arrived in the market. In 1972, Nissan started exporting vehicles from Civac, and in the decades since, it has built more than 6 million vehicles and created thousands of jobs in the region. Currently, Nissan produces the Navara and Latin America-market Frontier pickup trucks at the plant. However, data from AutoForecast Solutions shows that the plant is running at less than a third of its capacity, as it made just 80,000 pickups there last year. In 2025, Nissan plans to build 57,000, only a fraction of the 294,000 units it pumped out in 2016. Though the CIVAC plant was its first manufacturing plant outside Japan, according to one of the sources who spoke with Automotive News, the nearly 60-year-old plant is outdated and no longer cost-effective to operate. Another source told AutoNews that the automaker will consolidate production at the plant to two company-owned factories in Aguascalientes. The news of another potential shuttered historical Nissan plant comes on the heels of the announcement of the fate of the historic Oppama plant in Japan, which has been officially declared closed as part of the Re:Nissan restructuring and corporate austerity plan. The plant outside Tokyo has operated since 1961 as Nissan's central facility in Japan and employs about 2,400 employees. However, in a statement dated July 15, the Japanese carmaker said it will cease production by March 2028, at the end of the fiscal year 2027. As part of the Re:Nissan plan, the automaker is expected to shut down seven of its factories and reduce its bloated manufacturing capacity by nearly 30 percent to 2.5 million vehicles by the 2027 fiscal year. Plants in Japan, India, Argentina, Thailand, and South Africa are also expected to close. In a statement to AutoNews, Nissan spokesperson Brian Brockman said the moves aren't final just yet. 'However, this process has not yet been concluded,' Brockman said. 'If any decisions are made, we will provide information at the appropriate time.' Final thoughts Over the years, the CIVAC plant has produced many significant Nissan models, including the Datsun Bluebird, the Versa, the Sentra, the B13 Sentra-based Tsuru, and even the Nissan NV200 Taxi, which was made for a New York City pilot project. While this move comes as the Re:Nissan plan seeks to eliminate its unprofitable corners, it comes at the same time as the Trump administration lays down its tariffs on imported cars. As I mentioned previously, Nissan must overcome more than low sales and a bloated production capacity to save itself; it still has to play ball in its largest market, the United States. The Trump administration has currently imposed a 25% tariff on cars made in Mexico and has threatened to raise tariffs to 30% starting August 1. In response to these tariffs, Nissan has paused production of less profitable trims of the Sentra and Kicks for the U.S. market and plans to discontinue U.S. sales of the Versa next year. Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move first appeared on Autoblog on Jul 21, 2025 This story was originally reported by Autoblog on Jul 21, 2025, where it first appeared.
