The Nissan plant in Jiquilpan, Morelos, was the first that the Japanese firm opened outside of Japan. The complex, known as CIVAC , began operations in 1966 and since then has produced some twenty models, from the iconic Tsuru to the NV200, chosen in 2013 as the New York taxi.
During the 55 years it has always had new models assigned —which is key to guarantee the permanence of any automotive complex—, however, in the last decade it has not been able to get rid of the rumors of a possible definitive closure, which intensified after the opening of a highly flexible second Nissan plant in Aguascalientes, which in addition to being well connected was surrounded by suppliers.
“In 2012 we learned of the risk that this plant would close, since the lack of nearby suppliers and rail connectivity had reduced its competitiveness compared to the Aguascalientes plants, newer and more automated,” he said in 2016, during the commemoration of the 50 years of the complex, Greco Ramírez, then governor of Morelos.
After a negotiation between the assembly plant —which is the main generator of direct and indirect jobs in the entity—, the state government reopened the Cuautla railway and made commercial intelligence efforts to attract suppliers. The chassis manufacturer Autec, which previously supplied this plant from San Luis Potosí, set up shop 20 minutes from the CIVAC complex.
But since then, the number of models produced at the plant has been reduced. Tsuru ceased to be produced in 2017, after the approval of rule 194 that obliges automakers to incorporate airbags and ABS brakes. Incorporating these elements into the vehicle would have made it 7% more expensive. The production of the famous New York taxi – the NV200 model – ended in 2021 and that month the production of line 1 of the plant ended, where the Versa and V-Drive models were manufactured, whose production will be transferred to the Aguascalientes A1 complex .
This last movement caused the dismissal of 562 workers, which was carried out on four dates. The first, on January 20 and 21, when 183 workers were liquidated; the last one, on February 11, when 95 employees left. “Agreements were reached and the contracts were rescinded,” Joan Busquets, Nissan’s vice president of manufacturing in Mexico, explained in an interview.
The Japanese manufacturer is undergoing a transformation process, the guidelines of which are outlined in the Nissan NEXT plan, which prioritizes the long-term sustainable growth of the business. This implies maintaining an optimized portfolio and the search for productive efficiencies.
At a time when chips are scarce and the demand for vehicles has not yet recovered pre-pandemic volumes, it is not efficient at all to split the production of the same model in two plants. Especially if it is a segment that has been overshadowed in the US market by SUVs. This is noticeable in the production statistics: while in January 2021 17,685 units of Versa were assembled, in January 2022 the production of the model amounted to only 2,434 units, 86.24% less.
After the end of Versa production, the Morelos plant is left with only the renewed NP300 and Frontier pickups, which are exported to 20 countries. Although it is the best-selling model in its segment – the one-ton midsize pickup – a chip shortage keeps the pickup’s output lower than in 2021.
“But the workers don’t have to worry, that line is there,” says Busquets, who was visiting the complex this week. “The atmosphere is calm, they are happy to have a strong product,” says the manager.
Nissan produces the Frontier at two plants in North America, in Cuernavaca, and also in Canton, Mississippi. In the latter, it recently announced an investment of 1,000 million dollars to reconfigure it and produce electric vehicles.
In CIVAC remains the production of the renewed gasoline Frontier, a project in which Nissan invested 93 million dollars last year.
“It is a very powerful product, not only in the Mexican market, but also in the export market… This product has a long journey, therefore we do not have to worry about the Cuernavaca plant,” he concluded.
