Connect with us

Business News

Nissan to lay off 1,000 Mexican workers, cites market challenges

Published

on

Loading...

[ad_1]

The Nissan logo is seen at Nissan Motor Co.’s global headquarters building in Yokohama, Japan, December 17, 2018. REUTERS/Kim Kyung-Hoon

MEXICO CITY (Reuters) – Japanese carmaker Nissan Motor Co Ltd (7201.T) will lay off about 1,000 workers in Mexico at two factories, citing “challenging market conditions,” the company said on Thursday.

The layoffs will hit Nissan’s Cuernavaca and Aguascalientes manufacturing facilities. The company is still determining how the cuts will be distributed across the two plants but has already begun laying off people in Aguascalientes, Herman Morfin, a spokesman for Nissan Mexico, told Reuters.

Loading...

“In response to challenging market conditions in Mexico, Nissan is adjusting production levels,” Brian Brockman, Nissan’s director of corporate communications, wrote in an email to Reuters.

Nissan attributed its decision to a “decline suffered by the Mexican automotive industry,” driven by an increase in the costs of raw materials, among other factors.

In May, the Japanese auto maker said it would reduce vehicle production by up to 20 percent in North America. The decision was a response to the company’s declining profitability in the United States, the world’s second-biggest auto market and Nissan’s top market for sales.

Reporting by Anthony Esposito in Mexico City & Ben Klayman in Detroit; Writing by David Alire Garcia and Julia Love; Editing by Jeffrey Benkoe and James Dalgleish

[ad_2]

Loading...
Advertisement
Loading...
Loading...

Facebook

Loading...

Trending