Nissan and Mercedes Close Mexico Joint Venture Restructuring Automotive Sourcing
The May 2026 COMPAS plant shutdown forces automotive buyers to reconfigure regional tier-1 parts contracts and component routes.
Briefing
Nissan and Mercedes-Benz will permanently close their joint Cooperation Manufacturing Plant Aguascalientes in central Mexico on May 31, 2026. The shutdown winds down a long-running co-manufacturing venture, pushing automotive component buyers to re-route contracts across a decentralized assembly footprint. Tier-1 suppliers will see immediate revisions to delivery schedules as lines for Infiniti and Mercedes-Benz halt, shifting parts distribution and lead times throughout North America.
The plant accounts for an annual assembly capacity of 230,000 vehicles.
Context
Procurement desks long treated the central Mexican corridor as a dependable base for premium vehicle assembly. Shared lines allowed buyers to lean on co-located volumes for steady pricing and reliable lead times on shared platform parts, though trade tensions and shifting EV demand had already raised questions about the commercial life of these joint facilities.
Analysis
Shifting consumer demand toward alternative powertrains alongside changing tariff structures under international trade treaties drove the closure. The wind-down runs in two stages, dropping Infiniti output first before halting Mercedes-Benz production. That split leaves component suppliers managing mismatched phase-outs across individual part numbers, complicating replenishment schedules for chassis assemblies, metal stampings, and vehicle electronics.
As production scatters to separate brand facilities, buyers will have to negotiate new supply agreements across a wider footprint, temporarily driving up freight costs and administrative work during the transition.
Parameters
- Closure Date ~ May 31, 2026, marking the final end of operations at the Aguascalientes plant.
- Annual Production Capacity ~ 230,000 vehicles, representing the regional capacity lost for premium compact platforms.
- Transition Phasing ~ Infiniti model assembly ceases in late 2025, and Mercedes-Benz GLB assembly terminates in May 2026.
- Facility Area ~ 110 hectares of industrial property being decommissioned.
- Impacted Labor Pool ~ 800 workers, altering regional manufacturing employment and localized tier-2 supplier demand.
Outlook
Over coming quarters, procurement teams must track where Mercedes-Benz and Infiniti shift their assembly lines globally. Component contracts will also need reviewing against the scheduled 2026 United States-Mexico-Canada Agreement review to measure tariff exposure. How quickly local suppliers in central Mexico reallocate their lines will indicate whether the wider automotive supply chain can absorb the closure without bottlenecking deliveries.
Verdict
Buyers must audit regional automotive component contracts immediately to get ahead of supply disruptions from the phased wind-down of the central Mexican joint venture.