Nissan is currently restructuring its operations in Mexico to stabilize its financial position. This includes plant closures and cost reductions at various levels. Under its “RE:Nissan” strategy, the company has seen a significant decline in output, with a reported drop of 25.1% in vehicle production from January to May 2023 compared to the previous year, marking the first decline since 2022.
Key actions include:
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Plant Closures:
- CIVAC Plant: Nissan permanently closed its historic CIVAC plant in Cuernavaca on March 27, 2023. This plant has been operational for 60 years and was central to Nissan’s presence in Mexico.
- COMPAS Facility: Operations at the COMPAS plant, a joint venture with Daimler, will end by 2026 due to shifts in automotive dynamics and consumer preferences.
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Shifts in Production:
- Nissan is consolidating its manufacturing operations in Aguascalientes, moving production of models like the NP300 Frontier to this hub to enhance efficiency and export capacity.
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Cost Reduction Strategies:
- The company is implementing a micro-level cost-cutting program, aiming to lower vehicle build costs while maintaining quality. This includes standardizing components, simplifying lighting systems, and enhancing pre-assembly processes.
Overall, Nissan’s move reflects a strategic shift to adapt to changing market conditions while aiming to maintain its position as a leading automaker in Mexico, where it has produced over 17 million vehicles since entering the market in 1961.
