Texas Border Business
The Cooperation Manufacturing Plant Aguascalientes (COMPAS), a joint venture between Nissan Motor Co. and Mercedes-Benz Group, has announced it will cease operations in Mexico by May 2026. The decision marks a significant turning point for the country’s automotive industry, which has long been considered one of Latin America’s strongest manufacturing hubs.
COMPAS, located in the central state of Aguascalientes, was officially announced in 2015 with an investment of about US $1 billion. According to public records, the plant began operations after its formal founding on March 31, 2014. Designed with an annual production capacity of over 230,000 vehicles, the facility became an important node in the global supply network of both Nissan and Mercedes-Benz.
In a statement cited by Argus Media, company representatives confirmed that operations will end on May 31, 2026, with the production of Infiniti QX50 and QX55 models ended in November 2025, followed by the final assembly of Mercedes-Benz GLB vehicles in May 2026. The closure will affect approximately 3,600 direct jobs, and industry analysts estimate that hundreds of supplier positions could also be impacted.
COMPAS was initially seen as a model of collaboration between two global automotive giants. The joint venture’s goal was to share manufacturing platforms and logistics efficiencies while serving markets across the Americas. However, shifting global demand, supply chain realignments, and tariff pressures from the United States have altered that equation. A company spokesperson said that the decision is part of “a strategic global realignment and adjustments to market dynamics,” adding that COMPAS “will honor all contractual commitments with employees and suppliers in full and on time.”
The closure also reflects a wider trend in the automotive sector. Mexico-based manufacturers are facing challenges as consumer preferences evolve toward electric vehicles and companies restructure global production. Rising labor and logistics costs, as well as uncertainty surrounding U.S. trade policies, have also influenced corporate decisions.
Nissan, one of Mexico’s largest automakers, has separately announced that it will close its CIVAC Plant in Cuernavaca, Morelos, by March 2026, describing the move as part of its “global manufacturing realignment.” Meanwhile, Rassini, a leading supplier of suspension components, recently shut down its spring manufacturing facility in Piedras Negras, Coahuila, citing “market adjustments and efficiency optimization.”
The COMPAS decision follows a broader industry pattern in which automakers reassess where and how they produce vehicles. Analysts note that while some companies are consolidating operations in the United States under new incentives, others are scaling back in Mexico due to declining export competitiveness.
For Aguascalientes, a state that has built its identity around the automotive industry, the COMPAS closure represents both an economic and symbolic loss. Yet local officials say they remain confident that the region’s skilled labor and industrial infrastructure will continue to attract investment. As one industry observer told México Now, “The closure of COMPAS is not the end of automotive manufacturing in Aguascalientes—but it’s a clear signal that the global auto map is being redrawn.”
