Background on the Situation
Following Nissan’s announcement to cease operations in Jiutepec, Mexico, Morelos’ governor, Margarita González Saravia, sent a letter to Nissan’s CEO, Iván Espinosa, expressing her willingness to explore schemes that could reconsider the closure of the CIVAC plant in Jiutepec.
José Víctor Sánchez Trujillo, the Secretary of Economic Development in Morelos, explained that Nissan’s decision was influenced by various factors, including aggressive competition from countries like China in the global market.
Plant’s Viability and Workforce
Sánchez Trujillo highlighted the importance of skilled labor and updated technology for a viable automotive plant. He mentioned that Nissan’s Morelos plant, with only 40 hectares compared to Aguascalientes’ 460 hectares, lacked modernization for producing electric or hybrid vehicles.
“This made the plant less competitive compared to Chinese brands that dominate due to lower prices,” Sánchez Trujillo added.
Impact on Workforce
Approximately 2,200 workers with temporary contracts are affected. Sánchez Trujillo stated that there is potential for a normal labor negotiation process, focusing on retirement plans and relocation within other manufacturers like Aguascalientes and Puebla.
No official calculation of the impact has been made yet, but Sánchez Trujillo emphasized the need to utilize liquidation resources for long-term benefits, possibly guiding workers towards local investments or businesses.
Attractiveness for Investors
Despite the Nissan situation, sectors like pharmaceuticals and logistics are experiencing high demand in Morelos. Six new investments, including companies like Baxter and Ifa Celtics from the medical sector, have been confirmed.
“Morelos remains attractive for investment. We must avoid speculation and work together to move forward,” Sánchez Trujillo stated.
Governor’s Initiatives
Governor González Saravia is working on various initiatives for Morelos’ new economy. Marcelo Ebrard, the federal Secretary of Economy, mentioned that Amazon directors are planning to start production in Morelos and have scheduled a visit.
Key Questions and Answers
- What led to Nissan’s decision to close the plant in Jiutepec? Nissan cited various factors, including aggressive competition from countries like China in the global automotive market.
- How many workers are affected by Nissan’s closure? Approximately 2,200 temporary workers are impacted.
- What sectors are experiencing high demand in Morelos? Pharmaceuticals and logistics sectors are growing, with six new investments confirmed.
- What initiatives is Governor González Saravia working on for Morelos’ new economy? She is focusing on various initiatives, including attracting Amazon to start production in Morelos.
