The closure of Nissan ‘s CIVAC manufacturing plant in Cuernavaca, Morelos, marks the end of an era for the Mexican automotive industry and reflects a global restructuring strategy seeking greater operational efficiency.
Nissan chose CIVAC as the location for its first plant outside of Japan in 1966. At that time, Mexico was just beginning to write its automotive history, and the complex became a symbol of modernity, employment, and progress for the region.
Nearly six decades later, the Japanese company announced that its production lines at the facility would soon be shut down, marking the end of an era.
In an interview with T21, Alberto Bustamante, general director of the National Agency of Suppliers of the Automotive Sector (Anapsa) , commented that this closure is due to two main reasons: the age of the facilities and a global restructuring that the Japanese brand has undertaken in several countries, which has also involved adjustments in Japan, India, England and Argentina.
“The Cuernavaca plant was the first outside of Japan and where the first Nissan vehicle in Mexico was manufactured. However, we’re talking about a facility that’s been in operation for almost 60 years. The maintenance costs were no longer viable compared to the profit margin,” he explained.
According to Nissan, production in Mexico at CIVAC will be moved to Aguascalientes , where the assembly lines will be expanded to more modern and efficient facilities.
“This type of decision does not mean a weakening of the country’s automotive industry. On the contrary, it consolidates the Bajío and northern Mexico as key regions for automotive manufacturing,” he noted.
According to industry data, more than 80% of the vehicles produced in Mexico are exported to the United States , and concentrating operations closer to the border reduces export logistics costs.
In this regard, Bustamante ruled out significant impacts on the supply chain.
“No supplier is closing. There will only be logistical adjustments in some cases, especially for those located in the state of Morelos, who will now have to send their auto parts to Aguascalientes,” he explained.
For the rest of the suppliers, especially those located outside of Morelos, there will be no significant operational changes.
This dynamic is similar to what happened with the Michelin tire manufacturer when it announced it would move its production lines to Guanajuato, which “was misinterpreted as an exit from the country, when in reality it was an internal reconfiguration,” Bustamante emphasized.
Local impact
At the state level, the plant’s closure will have an economic impact. Nissan is one of the largest industrial employers in central Mexico.
In this regard, impacts are anticipated for direct and indirect employees , as well as for local services and businesses that depended on the operation, despite the company’s assurances that the change would be gradual to avoid any impact.
However, the automaker is expected to explore alternatives for relocating some of the affected employees, although details have not yet been released.
“We’ll have to wait for Nissan’s decisions, but we know they’re evaluating options,” Bustamante said.
Nissan’s announcement comes amid a complex context for the Mexican automotive sector, as logistical tensions and the technological transformation of the industry are compounded by tariff pressures from the United States.
“We’re just days away from the deadline for Mexico and the United States to reach an agreement on automotive rules of origin. It’s a tense environment,” Bustamante warned.
Although the closure of the CIVAC plant represents a loss for the state of Morelos, the Anapsa executive emphasized that this is not a divestment, but rather a commitment to process modernization and operational efficiency within Mexico.
Comment and follow us on X: @jenna_GH_ / @GrupoT21
