Nissan, Mercedes Will Close Joint Plant As Part Of Global Reset

Nissan is shutting down its joint-venture plant with Mercedes-Benz in Aguascalientes, Mexico, as part of a global cost-cutting and restructuring plan.

The factory, known as COMPAS, built Nissan’s Infiniti QX50 and QX55 as well as Mercedes-Benz’s GLB SUV. Production of the Infiniti models will stop this month, while Mercedes will keep the GLB running until May 2026, before the plant officially closes.

“This decision is part of a previously announced plan and reflects broader strategic shifts within the company,” said Nissan spokesperson Brian Brockman. 

Both carmakers are now exploring what to do next with the site.

The closure is part of Nissan’s push to turn around its struggling business after posting a US$4.4 billion net loss for the year ending March which is its first in four years. 

The automaker is scaling down worldwide, cutting 20,000 jobs and closing seven factories to reduce production capacity from 3.5 million to 2.5 million units.

In Mexico alone, Nissan is also shutting its CIVAC plant in Cuernavaca by March 2026, consolidating all operations under its Aguascalientes facilities.

Despite the downsizing, Nissan’s recent quarterly outlook has improved. The company now expects a US$324 million operating profit after previously forecasting a loss, thanks to aggressive cost-saving efforts.

Chief Financial Officer Jeremie Papin said Nissan will stay cautious in the coming months. 

“Our priority remains disciplined execution, strong cash flow management, and safeguarding profitability as we navigate these headwinds,” he said.

The move effectively ends one of the industry’s more ambitious partnerships. The US$1 billion COMPAS venture was launched in 2017 to build premium compact vehicles for both brands, but soft sales and shifting strategies cut the project short.

As Infiniti phases out the QX50 and QX55, replacements like the QX60 and QX65 are already on the way. Mercedes, meanwhile, plans to continue the GLB nameplate into its next generation.