- Nissan continues closing plants, this time in Mexico.
- The COMPAS facility will wrap up production next year.
- It currently builds the QX50, QX55, and Mercedes GLB.
Earlier this year, Nissan announced plans to close their CIVAC plant in Cuernavaca, Mexico and consolidate vehicle production in Aguascalientes. Unfortunately, the company has now announced the COMPAS plant is also doomed.
Speaking to Wards Auto, Nissan’s Brian Brockman confirmed the plant will close in the near future. While he didn’t give an exact date, production of the Infiniti QX50 and QX55 will end in November.
More: Nissan Shuts Down One Of Its Most Historic Sites Amid Sweeping Cuts
However, the publication says the plant will remain open until May 2026. This will enable Mercedes to continue building the GLB, which is one of the brand’s better selling vehicles in the United States.
The plant opened in 2017 as part of a joint-venture with Mercedes, but the partnership eventually fizzled. If that wasn’t bad enough, the facility produced a number of slow-selling vehicles including the aforementioned Infiniti crossovers as well as the A-Class, which was eventually dropped in the United States.
Through the first nine months of the year, QX50 sales were down 36.6% in the United States to a mere 4,994 units. The QX55 crossover coupe performed even worse as it only managed to find 1,931 takers.
Brockman told the publication the “decision is part of a previously announced plan and reflects broader strategic shifts within the company.” That appears to be a reference to the Re:Nissan recovery plan, which already doomed their Oppama plant in Japan.
Nissan’s goal is to cut global production capacity from 3.5 million units to 2.5 million units, while increasing plant utilization rates to around 100%. In order to do this, they’re planning to close up to seven manufacturing facilities.
Nissan Updates Their Financial Outlook
The plant closure comes as the automaker revised their first half financial outlook and provided updated guidance for the fiscal year ending March 31, 2026.
As part of the revisions, Nissan is now expecting an operating loss of ¥30 billion ($195 million) for the first six months of the fiscal year. That’s a huge improvement from the previous estimate of a ¥180 billion ($1.17 billion) loss.
For the full year, the company is now looking at having revenues of ¥11.7 trillion ($76 billion). However, they’re expecting to lose ¥275 billion ($1.79 billion).
That’s a lot of money and Nissan chalked up the disappointing forecast to “anticipated challenges in the second half due to supply chain risks, foreign exchange volatility, tariffs, and other external factors.”
Sources: Nissan, Wards Auto
