Japanese automaker Nissan Motor Co. plans to close its CIVAC manufacturing plant in Cuernavaca, Mexico, due to restructuring measures amid sluggish global sales.
The company will transfer all vehicle production from Cuernavaca to the Nissan complex in the Mexican city of Aguascalientes by March 2026, according to a news release on Tuesday.
Cuernavaca is located in south central Mexico, about 360 miles south of Aguascalientes.
“Today we have made a difficult but necessary decision that will allow us to be more efficient, competitive, and sustainable,” Nissan CEO Iván Espinosa said in a statement. “I take this opportunity to reaffirm our commitment to our employees, customers, and to Mexico, which remains a strategic pillar for our company.”
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The restructuring will directly impact 2,400 workers at the CIVAC Cuernavaca plant. When the factory opened in 1966, it was the first Nissan auto plant outside of Japan.
The Cuernavaca plant produces versions of its Frontier model built for Mexican and South America markets. The factory also assembles versions of the Nissan Versa model sold in Mexico and the U.S.
Nissan announced in 2024 plans to reduce global production capacity from 3.5 million units to 2.5 million units by reducing production sites in Japan and internationally from 17 to 10 by 2027.
As part of the restructuring, Nissan plans to slash about 15% of its global work force, about 20,000 employees.
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