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Nissan to Shut Mexico Civac Plant by 2026 Amid Global Restructuring

Nissan to Shut Mexico Civac Plant by 2026 Amid Global Restructuring. Source: Pere López Brosa, CC BY-SA 3.0, via Wikimedia Commons

Nissan (OTC:NSANY) announced plans to cease production at its Civac plant in Jiutepec, Mexico, by March 2026 as part of its sweeping global restructuring strategy. Vehicle production will be consolidated into the company’s Aguascalientes complex during the current fiscal year to improve operational efficiency.

This move follows earlier announcements that Japan’s third-largest automaker will halt production at two domestic facilities — the Oppama plant by March 2028 and Nissan Shatai’s Shonan factory by March 2027. The restructuring plan aims to streamline operations, reduce costs, and bolster competitiveness across key markets, including the United States and China.

Nissan CEO Ivan Espinosa emphasized Mexico’s ongoing strategic importance, stating that the decision, while difficult, is crucial for building a more efficient and sustainable company.

The Civac facility, which began operations in 1966 as Nissan’s first plant outside Japan, has produced over 6.5 million vehicles in its history. The closure marks a significant shift for the automaker, which is targeting a reduction in global production capacity from 3.5 million to 2.5 million vehicles and cutting its manufacturing sites from 17 to 10.

The announcement comes ahead of Nissan’s first-quarter financial results, expected later today. The automaker continues to navigate challenges in a competitive global market while pursuing a turnaround strategy aimed at restoring profitability and focusing on core markets and models.

This restructuring underscores Nissan’s push to optimize global operations and adapt to evolving industry dynamics, including shifting consumer demand and intensified competition in electric and hybrid vehicle segments.

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