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Nissan Is In Financial Trouble. Now It May Lose an Important Part of its Manufacturing History
Nissan Is In Financial Trouble. Now It May Lose an Important Part of its Manufacturing History

Motor 1

time6 hours ago

  • Automotive
  • Motor 1

Nissan Is In Financial Trouble. Now It May Lose an Important Part of its Manufacturing History

Nissan's situation is dire, and its new CEO is implementing drastic measures to turn around the company's fortunes. Last week, the automaker announced it would close its Oppama Plant in Japan by March 2028. It's one of seven Nissan plants to close, and the other six could include two factories in Mexico. A new report from Automotive News , citing 'two people with knowledge of the matter,' alleges the Japanese automaker will shutter its Civac plant by March 2027, which Nissan has been operating for nearly 60 years. It was the company's first factory outside Japan, and currently builds the Navara and Latin America Frontier . A company spokesperson told Autonews a final decision hasn't been made about which plants it'll close next. The report also alleges that the Japanese automaker will dissolve its partnership with Mercedes-Benz early next year after it concludes producing two Infiniti crossovers, the QX50 and QX55, at its COMPAS facility. Nissan announced in January that it'd end production of the two models this December. Workers build the Infinitis alongside the Mercedes GLB . In addition to closing seven factories, reducing the number it operates to 10, Nissan aims to lower production capacity by 30 percent by 2027 and reduce its workforce by 20,000. In May, the company announced it had paused development of certain models , reassigning employees to 'focus on cost reduction initiatives,' even as the automaker works to reduce the time it takes to launch next-generation models. Nissan's Uncertain Future Nissan's new CEO has a lot of work to do, and it seems like every option is on the table. A report from earlier this month alleged Nissan might build Honda-branded trucks at its Mississippi factory. This would help Honda avoid President Donald Trump's tariffs on imported vehicles and allow Nissan to bring the factory's production capacity closer to full utilization. However, the company hasn't made any official announcements. The company is implementing its 'Re:Nissan' recovery plan, which includes laying off approximately 20,000 people, primarily through plant closures. It'll also work to bring its manufacturing utilization to 100 percent at its remaining factories. It'll also attempt to reduce engineering costs by 20 percent, while asking suppliers to take IOUs . If all goes according to plan, Nissan could save $3.4 billion. But this plan arrives after Nissan recorded a net loss of $4.5 billion last year. Here's More Nissan News: Nissan Just Issued a Major Recall for Its Funky Variable-Compression Engine The Nissan Z Is Crushing the Toyota Supra In Sales Get the best news, reviews, columns, and more delivered straight to your inbox, daily. back Sign up For more information, read our Privacy Policy and Terms of Use . Source: Automotive News Share this Story Facebook X LinkedIn Flipboard Reddit WhatsApp E-Mail Got a tip for us? Email: tips@ Join the conversation ( )

Crisis-hit car brand ‘to close another two major plants' – days after shutting flagship factory with 2,400 workers
Crisis-hit car brand ‘to close another two major plants' – days after shutting flagship factory with 2,400 workers

The Sun

time14 hours ago

  • 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

Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move
Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move

Yahoo

timea day ago

  • 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.

Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move
Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move

Auto Blog

timea day ago

  • Automotive
  • Auto Blog

Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move

View post: Walmart is selling a 'heavy-duty' $600 carport for only $320, and shoppers love its 'durability and construction' 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. 1st car produced at Nissan CIVAC Plant — Source: Nissan 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. Source: Nissan 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. About the Author James Ochoa View Profile

Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move
Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move

Miami Herald

timea day ago

  • Automotive
  • Miami Herald

Nissan Plans to Shutter Mexican Factories in Cost-Cutting Move

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. 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." 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. Copyright 2025 The Arena Group, Inc. All Rights Reserved.

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