Cuernavaca, Morelos - Nissan leaves Morelos after six decades of operations in Cuernavaca. They officially confirmed the closure of its CIVAC manufacturing plant by March 2026. The move marks the end of an era for the central Mexican state. Morelos was home to Nissan’s first production facility outside Japan. The company will consolidate operations in Aguascalientes as part of a broader global restructuring plan.
The closure is a key part of Nissan’s Re:Nissan plan to reduce its global footprint. They aim to cut down from 17 manufacturing plants to just 10. The company cited long-term financial pressures. Nissan also noted the need to streamline its production network to remain competitive. Though Nissan emphasized that it is not leaving Mexico, its departure from Morelos represents a significant economic and symbolic loss for the region.
Nissan leaves Morelos as part of consolidation strategy
Production at the CIVAC plant will wind down gradually. All activity is expected to cease during the 2025–2026 fiscal year. The NP300 pickup, currently manufactured in Cuernavaca, will be transferred to Nissan’s modern facilities in Aguascalientes. There, it will share space with the Frontier model, which is also shifting from a factory in Argentina.
“This was a difficult but necessary decision,” said Iván Espinosa, Nissan’s senior vice president. “It allows us to become more efficient, more competitive, and more sustainable in the long term.”
The company stated that Aguascalientes offers advanced production equipment, modern logistics, and infrastructure. These will support the future of vehicle manufacturing in Mexico. But for Morelos, the loss is personal. Nissan has been a cornerstone of the state’s industrial identity since the 1960s, employing generations of local workers.
Economic uncertainty looms for Morelos
With Nissan leaving Morelos, thousands of direct and indirect jobs are now at risk. Although the company has not released details on severance or transition support, it promised to carry out the closure “under the best possible conditions” and “with respect for the workforce.”
Morelos officials have not yet issued a formal response to the news. However, economic analysts warn the state may face increased unemployment and a decline in industrial activity. This is especially concerning given the lack of similarly sized manufacturers in the region to absorb the displaced labor.
Nissan’s Cuernavaca plant was once seen as a symbol of Mexico’s emergence as a global auto manufacturing hub. Its closure now raises concerns about the future of legacy industrial sites in states without strong diversification.
Nissan keeps its foothold in Mexico with Aguascalientes expansion
While Nissan leaves Morelos, it reaffirms its commitment to Mexico overall. The company’s two Aguascalientes factories will absorb the models currently built in Cuernavaca. Production capacity will be expanded to handle both domestic demand and export growth. Nissan remains the leading light vehicle brand in the Mexican market. They maintain an 18% market share and 17 consecutive years at the top.
“Nissan Mexicana is not going anywhere,” the company said in a statement. “We will continue to serve our customers and maintain our leadership through this transition and beyond.”
The move to consolidate production also appears to position Nissan strategically. This is ahead of looming trade policy changes. The United States is scheduled to impose 30% tariffs on Mexican-made vehicles starting August 1. Although Nissan did not mention this directly, streamlining operations in Aguascalientes could help reduce overhead and soften the impact of increased export costs.
Historic plant closure ends a chapter in Mexican auto history
The CIVAC plant was Nissan’s first international manufacturing venture. Its construction marked the beginning of Japan’s long-standing automotive relationship with Mexico. Now, as Nissan leaves Morelos, it leaves behind not just an empty factory, but decades of industrial legacy, community ties, and regional pride.
“This isn’t just a business decision—it’s the end of a chapter that shaped the lives of thousands of Morelenses,” said a former plant worker who asked not to be named.
The cost of the relocation and consolidation process is still being evaluated, according to Nissan. But one cost is already clear: Morelos is losing one of its largest private employers and a pillar of its economy.
As the final vehicles roll off the Cuernavaca production line over the next year, Nissan’s departure from Morelos will be felt well beyond the factory gates.
