Nissan Motor Company has recently announced its decision to close down the CIVAC vehicle production plant in Cuernavaca, Mexico, as part of its broader Re:Nissan global recovery plan. This move is in line with the company’s efforts to streamline its operations and improve efficiency.
The closure of the CIVAC plant is part of Nissan’s strategy to reduce its global production capacity from 3.5 million vehicles annually to 2.5 million units and increase its plant utilization rate to close to 100%. The company aims to consolidate its production sites globally from 17 to 10, making its operations more agile and responsive to market demands.
Production of current and future vehicle models at the CIVAC plant will be transferred to Nissan’s Aguascalientes plant in Mexico. This restructuring is intended to strengthen Nissan’s manufacturing footprint and leverage advanced equipment to drive production and logistics efficiencies, supporting sustainable growth in the long run.
Nissan’s CEO, Ivan Espinosa, emphasized the company’s commitment to efficiency, competitiveness, and sustainability through this transition. He acknowledged the contributions of the CIVAC plant employees over the years and expressed gratitude for their dedication. Despite the closure of the plant, Nissan remains committed to its employees, customers, and Mexico as a strategic market.
The CIVAC plant has a rich history, starting operations in 1966 with the production of the Datsun Bluebird. Over the years, it has produced six million units, including models like the Nissan NP300, Frontier, and Versa. These models will now be manufactured at the Aguascalientes facility, ensuring continuity in production and supply.
In conclusion, Nissan’s decision to close the CIVAC plant is a strategic move aimed at optimizing its global operations and strengthening its position in the automotive market. By consolidating production sites and leveraging advanced technology, the company is setting the stage for sustainable growth and efficiency in the years to come.
