Nissan layoffs impact 550 workers at Cuernavaca, Mexico assembly plant
12 March 2018
On March 2, Nissan announced the layoff of 550 workers at its Cuernavaca, Morelos assembly plant (CIVAC). The layoffs represent the elimination of an entire shift and come in the wake of a continued decline in auto sales. Combined with 600 layoffs at the facility last year, there have been 1,150 layoffs at CIVAC in less than a year.
Nissan has two manufacturing plants in the central state of Morelos, employing over 3,500 full and part-time workers. Nissan is the highest-selling auto company in Mexico, capturing 25 percent of the national market. The CIVAC plants produce 56 percent of Nissan’s cars in Mexico and assemble the popular Versa and NP300 pickup models. Until May of last year, the plants also built the company’s Tsuru model, which was discontinued because it could no longer meet safety and environmental standards.
Nissan also recently announced that, as of June of this year, the plants would no longer assemble the Tiida model. The CIVAC plants assembled over 800,000 cars in 2016.
The company cited a fall in sales and overstock for the layoffs at the plants. Nissan auto sales in Mexico have fallen by 15.9 percent since June 2017, while the industry as a whole saw a 9.4 percent decline in Mexican car sales in January and February of this year compared to the same period last year. According to the director of the Mexican Association of Automotive Sector (AMIA), a decrease in sales is due to a rise in inflation and an increase in interest rates.
The layoffs will have a ripple effect through the area, affecting the region’s production of tires, auto parts, and transportation of finished cars. According to the state government, the CIVAC complex is the main…