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Nissan to Idle Mexico Assembly Line as Cost-Cutting Drive Continues

Japanese automaker says suspension not related to sweeping Trump tariffs that started Wednesday
Japan
n 7201.TSE Mid and Small Cap 2000
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Nissan Motor Co. will suspend production at one of its two vehicle assembly lines at its historic CIVAC plant in Mexico, furthering the automaker’s global restructuring effort to reduce costs.

The Japanese carmaker will halt operations at the facility’s C1 line, which was reactivated last year to produce sedans after being used intermittently to adjust production levels. The company indicated the suspension was planned in advance after meeting production targets.

While Nissan will continue producing pickup trucks on the plant’s C2 line, the move aligns with the manufacturer’s broader strategy to consolidate operations. The automaker stated that the shutdown is unrelated to the sweeping tariffs on U.S. trading partners announced by President Donald Trump on Wednesday, which imposed a baseline 10% duty on all imports with higher rates for specific countries.

The CIVAC facility, Nissan’s first manufacturing complex outside Japan, has faced previous production adjustments. In 2022, the company transferred Versa sedan production from CIVAC to its Aguascalientes plant while maintaining pickup truck production at the historic site.

Nissan, which operates three other vehicle assembly plants in Mexico, said no staff reductions are planned in connection with the pause. The automaker also plans to consolidate pickup truck production by ending manufacturing at partner Renault’s plant in Argentina this year, shifting that work to Mexico.

The moves come as global automakers face multiple headwinds including inflationary pressures, supply chain disruptions, and growing trade tensions following Trump’s implementation of new tariffs that could reshape North American automotive production.

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