Mexico City, 27 October (Argus) — Nissan and Mercedes-Benz will close their joint COMPAS assembly plant in Aguascalientes in May 2026, marking the second Nissan facility in Mexico to shut down since the US imposed tariffs in March.
Executives confirmed the decision in a 23 October letter to suppliers, citing global restructuring and shifts in market demand. The letter said Infiniti auto production will end in November 2025, while Mercedes-Benz output will continue until the plant’s final shutdown in May 2026. The plant was designed with an initial annual production capacity of 230,000 vehicles.
COMPAS — the Cooperation manufacturing plant Aguascalientes — is a joint venture between the Renault-Nissan Alliance and Daimler. Built in 2015 with a $1bn investment, the plant is one of five Nissan manufacturing assets in Mexico and one of four automotive facilities in Aguascalientes, where the company operates two vehicle assembly plants and a powertrain plant, in addition to COMPAS.
The move follows Nissan’s July confirmation of the closure of its CIVAC plant near Cuernavaca, Morelos — its first factory outside Japan when it opened in 1966. Nissan produced 122,320 vehicles at CIVAC in 2024, out of 669,941 units across all its Mexican sites that year. Those five accounted for roughly 17pc of Mexico’s record 3.99mn vehicles produced in 2024, according to national statistics agency Inegi — a record unlikely to be matched soon.
The closures are among the most significant developments for Mexico’s auto sector since the US imposed a 25pc tariff on all Mexican goods in March. The measures form part of a broader tariff-based trade policy that also includes duties on steel, aluminum and heavy-duty trucks — pressuring Mexico’s auto industry.
The impact has been partly offset by exemptions for goods and materials that comply with the US-Mexico-Canada (USMCA) free trade agreement. Effective tariff-rate estimates now range from 3-15pc, according to multiple industry trackers. Yet, these exemptions offer limited relief for automakers relying on specialized components produced outside Mexico — a challenge weighing most heavily on German and Japanese manufacturers, according to market sources.
A 90-day pause on the planned tariff increase to 30pc from 25pc, originally set for 1 August, expires at the end of October unless a new US-Mexico trade deal is reached.
Still, the overall impact may be moderate, said Victor Herrera, head of economic studies at the Mexican finance executive’s association IMEF. “Even if the rate rises after the 90-day period, the effective tariff rate will remain below 5pc,” he said.
By James Young
