In a major development that signals deeper changes within Nissan’s global strategy, new reports indicate that the Japanese automaker is planning to shut down two more of its key vehicle manufacturing facilities—this time in Mexico—by early 2027. This comes shortly after Nissan officially confirmed the closure of its iconic Oppama plant in Kanagawa, Japan, which is set to wind down operations and transfer production to Kyushu, also in Japan, by 2027. Now, all eyes are turning to Mexico, where the automaker is reportedly preparing to close both the Civac plant in Morelos and the COMPAS plant in Aguascalientes.

This news marks another chapter in Nissan’s ongoing “Re: Nissan” turnaround initiative, a global restructuring effort aimed at restoring profitability and streamlining operations. The company’s goal is to consolidate and reduce the total number of manufacturing plants from 17 to just 10—a move designed to reduce overhead, improve efficiency, and ensure long-term financial stability.

Nissan’s Historic Civac Plant on the Chopping Block

The Civac plant in Morelos has a particularly rich history within Nissan’s global operations. It was the company’s very first international plant, launched back in 1966. For nearly six decades, it has played a vital role in producing various models for both domestic and global markets. Most recently, the plant has been manufacturing vehicles such as the NP300 (sold in various forms including the NP300 Navara and Frontier), the Mexico-only V-Drive based on the N17 Versa, and the N18 Versa sedan that is currently sold in the U.S.

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Despite its significance, sources suggest the Civac plant is now considered outdated. Modernizing the facility would require a substantial financial investment, something that Nissan appears unwilling to undertake under its current cost-cutting measures. Rumors of its closure had already begun to swirl back in May, but Nissan swiftly denied those claims at the time. Now, with this new report emerging from Automotive News, the writing may be on the wall.

Interestingly, Chinese automakers BYD and SAIC are reportedly showing interest in acquiring the Civac facility. Both brands have been exploring ways to expand their manufacturing footprint into North America, and acquiring an existing plant could be a strategic way to fast-track that process.

COMPAS Plant: A Short-Lived Collaboration Faces Closure

The second facility expected to close is the COMPAS (Cooperation Manufacturing Plant Aguascalientes) plant, which was originally established as a joint venture between Nissan and Mercedes-Benz. This plant only began operations about a decade ago and was once seen as a symbol of global automotive cooperation.

Over the years, COMPAS produced several notable models, including the Mercedes GLB (starting in 2019), the Infiniti QX50 (2017), and the Infiniti QX55 (2021). However, production for all three models is expected to end. The Infiniti QX50 and QX55 already had new orders paused back in April 2025, and production is expected to conclude later this year. This decision reportedly stems from the lingering effects of tariffs imposed during the Trump administration, which made importing non-U.S.-built vehicles less viable.

As for the Mercedes GLB, its production at the COMPAS plant is also nearing its end, with reports suggesting that the next-generation version of the SUV will shift to a new vehicle architecture (MMA) and move production to the United States. That change is expected to take place in the first quarter of 2026.

Nissan’s Official Response Remains Cautious

When asked to confirm these reports, Nissan released an official statement that reads:

“Under Re:Nissan, Nissan is currently reviewing the integration and closure of some of its global production sites. However, this process has not yet been concluded beyond the three sites that have been announced so far. We are committed to maintaining transparency with our stakeholders, and if any decisions are made, we will provide information at the appropriate time.”

As of now, the three confirmed closures under the Re: Nissan program include:

• The Oppama plant in Kanagawa, Japan (confirmed for closure by 2027).
• One of Nissan’s two factories in the Samut Prakan province of Thailand (being consolidated).
• A third plant that has not yet been officially named.

The potential closure of the Civac and COMPAS plants would bring that total to five, suggesting that Nissan may be moving even faster than expected in its aggressive restructuring efforts.

Why Is Nissan Closing So Many Plants?

Nissan has been facing serious financial challenges in recent years, including declining global sales, supply chain disruptions, and fierce competition from both traditional and emerging automakers—especially from China. The “Re: Nissan” initiative is the company’s bold attempt to right the ship by:

• Reducing operational costs
• Concentrating production in more modern, cost-effective locations
• Strengthening profitability
• Avoiding bankruptcy risks and ensuring long-term viability

By scaling down from 17 production sites to just 10, Nissan aims to significantly cut overhead costs while improving the efficiency of its manufacturing network. However, this process is also leading to job losses, the abandonment of older infrastructure, and increased uncertainty in key markets.

What Happens Next?

One major question that remains unanswered is where Nissan will relocate the vehicle production currently handled by the Civac and COMPAS plants. No alternative sites have been officially announced, and it’s unclear whether production will be moved to other facilities within Mexico, back to Japan, or potentially outsourced to other regions like the U.S. or South America.

There’s also the looming question of whether Chinese manufacturers will take over any of the facilities being vacated. If BYD or SAIC manage to acquire the Civac plant, it could significantly shift the competitive landscape in North America’s automotive manufacturing sector.

A Sign of the Times

Nissan’s ongoing plant closures are part of a much broader trend in the global auto industry, where companies are being forced to adapt to rapid changes in technology, international trade policy, and consumer demand. From electric vehicle transitions to supply chain reconfigurations and regional manufacturing shifts, the industry is undergoing massive transformation.

While Nissan is certainly not the only automaker trimming operations, its decision to close multiple long-standing plants—including one as historic as Civac—sends a strong signal that no facility is safe if it doesn’t meet the company’s evolving production strategy.

For workers, suppliers, and even customers, these closures are a sobering reminder of how quickly things can change in the global automotive world.

Stay tuned for updates as Nissan’s global restructuring continues to unfold. We’ll bring you the latest news as it’s confirmed.

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