Nissan has begun making radical decisions as part of its restructuring process to overcome its financial difficulties. The company’s rescue plan, dubbed “Re:Nissan,” includes the closure of seven production facilities worldwide, the layoff of 20,000 employees, and a 30% reduction in total production capacity.
Nissan to Close Mexico Plant
In this context, Nissan’s first production facility outside Japan, the Civac plant in Mexico, which has been operating for nearly 60 years, is also at risk of closure. Located in Cuernavaca, Mexico, the Civac plant, which opened in 1966, currently produces the Navara and Frontier models for the Latin American market. It is reported that the plant could close as early as March 2027.
Last week, it was announced that the Oppama plant in Japan will be closed by March 2028. The consecutive closures of these two facilities represent a significant transformation of Nissan’s production infrastructure.
In response to rising costs, the company is taking measures such as not only plant closures but also canceling new model projects and implementing a 20% reduction in engineering spending. It has also been previously reported that Nissan has requested suppliers to postpone payment deadlines. The aim of all these decisions is to increase efficiency at its remaining production facilities and achieve 100% capacity utilization.
Nissan is also working on a significant move in the US market. Production of Honda-branded pickup trucks has been discussed at its Mississippi production facility. This possibility would allow Honda to avoid US import duties and enable Nissan to use its production capacity more efficiently. However, the company has not yet made an official announcement on this matter.
Nissan, which reported a net loss of $4.5 billion in 2024, aims to achieve total savings of $3.4 billion with its current restructuring plan. However, achieving this target would entail significant consequences such as job losses, regional economic impacts, and production contractions. This process, led by the new CEO, stands out as one of the most comprehensive restructuring steps in the company’s history.
