Nissan had just announced its turnaround plan earlier this week, and it spelled trouble for thousands of employees across its global operations. More importantly, seven out of 17 assembly plants are in danger of closing down in the automaker’s effort to consolidate its production and cut costs. Nissan hasn’t officially announced which plants specifically are to be shuttered, though a report from Japan could help shed some light on the matter.
According to Nikkei Asia, the automaker is targeting to close two plants in Japan and one each in South Africa, India, and Argentina. Two plants in Mexico are also reportedly in danger, including the CIVAC facility that has been around since 1966. However, Nissan has since released a statement about the veracity of the report, denying the latter and then confirming some.
Nissan Denies Some Plants From The Report
In a statement, Nissan officially confirmed that the CIVAC plant in Mexico will carry on and will stand as the single manufacturing hub for the Frontier and Navara for the region, consolidating its operations in Mexico and Argentina. However, the automaker didn’t provide further information about the other plants in Nikkei Asia‘s report.
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There are six plants currently servicing the Latin Americas. Four of them are in Mexico – one’s the aforementioned CIVAC plant and the other three are in Aguascalientes, with one dedicated to making powertrains. The other two plants are located in Brazil and Argentina. Of note, the Frontier sold in the US is manufactured in Nissan’s Canton plant in Mississippi, together with the Altima and the now-discontinued Titan full-size truck.
Employee Lay-Offs Are Happening
That said, the two vehicle assembly plants in Aguascalientes, Mexico, stand as the prime candidates for closure at this time. One of them produces the Sentra that’s being imported to the US, further supporting previous reports that the sedan’s production would be brought stateside to curb the negative effects of America’s tariff woes. While the latest version of the added tax exempts parts from Canada and Mexico, importing fully assembled ones isn’t part of the deal.
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Nissan’s turnaround plan aims to cut costs by 500 billion yen ($3.4 billion) by fiscal year 2026, involving slashing fixed and variable costs. The former includes streamlining operations of underutilized plants, leading to the aforementioned plant closures and employee lay-offs – up to 20,000 jobs will be cut globally by fiscal year 2027.
Source: Nikkei Asia, Nissan
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