Mass layoffs at Nissan in Morelos: After 59 years, the Japanese firm is shutting down production.
Mexico City.- Nissan confirmed it will halt car production at its historic plant in Cuernavaca, Morelos, which began operations in 1966 and marked the automaker's first expansion outside of Japan.
Will there be mass layoffs at Nissan in Morelos?More than 3,000 workers on two production lines will be affected.
"Today we announce another decisive step forward within the framework of the 'Re:Nissan' plan: the completion of vehicle production at the Civac plant in Morelos, whose operations will be integrated into our Aguascalientes complex," stated Mexican Iván Espinosa, global CEO of the Japanese company, in a statement.
Production moves to AguascalientesThis was a difficult but necessary decision, driven by our commitment to act with speed, clarity and purpose in transforming Nissan Motor Corporation for long-term strength," he added.
In an official statement, the Japanese company detailed that it will move all of its vehicle production in the country to the Aguascalientes complex during fiscal year 2025, which ends in March 2026.
Thus, the Nissan NP300, Frontier, and Versa models, currently produced in Civac, will be manufactured in Aguascalientes.
To date, the Civac plant has produced more than 6.5 million vehicles for Mexico and other parts of the world. It currently represents 11 percent of Nissan's total production in the country.
With this decision, Nissan aims to achieve sustainable growth and become more efficient and competitive.
Under the "Re:Nissan" program, it seeks to reduce its global production capacity from 3.5 million units (excluding China) to 2.5 million, while maintaining a plant utilization rate close to 100.
To achieve this, the company aims to consolidate its production plants from 17 to 10.
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