Nissan Motor said Wednesday it will halt production at its Civac plant in Mexico by March 2026, marking the end of operations at the automaker’s first factory outside Japan, which opened in 1966.
The Japanese company will consolidate vehicle production to its Aguascalientes plant in Mexico during the current fiscal year as part of its sweeping Re:Nissan restructuring plan. The Civac facility currently represents 11% of Nissan’s total production in Mexico, manufacturing the NP300, Frontier and Versa models.
The closure reflects Nissan’s deteriorating financial position. The company plans to eliminate 20,000 jobs globally through fiscal 2027 and reduce its manufacturing footprint from 17 plants to 10. Nissan aims to slash costs by approximately 400 billion yen ($2.7 billion) by fiscal 2026.
The decision comes as Trump administration tariffs of 25% on vehicles imported from Mexico have undermined the cost-effectiveness of Mexican production. Nissan’s factory utilization rates fell to just 57.7% in the US and 45.3% in China in 2024, well below the industry’s 80% breakeven threshold.
The historic Civac plant has produced more than 6.5 million vehicles since 1966, starting with the Datsun Bluebird. Industry analysts suggest Chinese automakers like BYD and SAIC may eye the facility as a potential North American production base.
