Nissan Motor (TYO:7201) will soon cease vehicle production at its Mexican plant jointly operated with Mercedes-Benz as part of a global restructuring plan to eliminate seven manufacturing sites, Nikkei Asia reported Wednesday.
The facility, which currently produces the Infiniti QX50 and QX55 models, will end manufacturing in November, said the publication.
The plant has been severely underutilized, with its 2024 output of approximately 70,000 vehicles representing only about 30% of its total annual capacity, the report said.
This figure is far below the auto industry's typical break-even point of 80% capacity utilization, added the news daily.
Nissan Motor has yet to respond to MTNewswires' queries at press time.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)