Background and Relevance of Nissan in Mexico
Nissan, a prominent Japanese automaker with a significant presence in Mexico, has announced the closure of its CIVAC plant in Morelos. This decision will lead to the relocation of production capacity to its Aguascalientes facility, which is expected to increase manufacturing and offset the impact of this restructuring.
Impact on Production and Supply Chain
Approximately 2,400 workers face the risk of losing their jobs in Jiutepec. However, industry experts assert that this move should not affect the overall production volume of Nissan in Mexico nor cause significant disruption to the autoparts supply chain, according to automotive industry voices in Mexico.
Morelos, despite having the CIVAC plant, contributes only 1.5% to Mexico’s total autoparts production, as per INA data, and does not rank among the top ten entities for autoparts manufacturing. Consequently, the closure’s impact on the broader supply chain is expected to be limited.
Local Economic Implications
The local economy of Jiutepec will undoubtedly suffer, as Nissan has been a significant economic driver and business magnet for the area over the past 60 years.
Although Nissan claims that Mexico’s production volume remains unchanged, the company aims to cut fixed costs and adopt a more flexible production system.
Industry Perspectives
Odracir Barquera, director of the Mexican Automotive Industry Association (AMIA), stated that Nissan will maintain its production levels, now concentrated in Aguascalientes. This shift should not affect production, according to Barquera.
Alberto Bustamante, director of the National Agency for Automotive Suppliers (ANPSA) and former INA director, confirmed that the supply chain will not be affected since only a few suppliers catered to CIVAC, and they remain unchanged.
Potential Relocation Opportunities
Morelos Governor Margarita González mentioned the possibility of Nissan offering job opportunities in Aguascalientes for CIVAC employees during the transition process.
“We are inviting workers to discuss their options, depending on the transition process, it may take weeks or months. We will support the workers’ situation. Those who wish to stay in the state, with their skilled labor, we will talk to other automotive companies operating in Morelos to ensure job availability. We also have an emergency program for business startups,” González stated.
González also extended an invitation to other automakers, highlighting tax incentives and available industrial parks in Morelos for potential investors.
In the past year, Chinese companies like MG or Chirey have shown interest in establishing a presence in Mexico. The Nissan site could be an attractive option for these companies, although they are currently evaluating more competitive manufacturing locations.
