The 50:50 partnership, which began in 2015, will officially wind down after Infiniti’s QX50 and QX55 are phased out this month. The final vehicle, a Mercedes GLB, will complete its run in May 2026, bringing an end to operations at the $1 billion factory.
The plant, launched as part of a strategic collaboration between Nissan and Daimler, was designed to produce vehicles for both brands. Nissan’s QX50 and QX55 started production in 2017, followed by the Mercedes A-Class and the GLB.
However, the A-Class was discontinued in 2020, and now, with the closure of the Aguascalientes facility, production of the QX50 and QX55 will also cease this month, according to Nissan spokesperson Brian Brockman. Mercedes has announced that the GLB will continue until May 2026, after which the plant will shut down entirely.
Nissan’s Restructuring Efforts
The closure of the Aguascalientes plant is part of a broader restructuring plan aimed at significantly reducing Nissan’s global manufacturing footprint. The company is planning to close several other factories as part of its cost-cutting measures, including its Oppama plant in Japan and another facility in Mexico, reports Motor1.
Alongside these closures, Nissan is also scaling down its global workforce by 20,000 employees. This is in line with the company’s goal to simplify its operations and reduce production costs in the face of financial challenges.
As part of this strategy, Nissan will reduce the number of vehicle platforms it uses from 13 to 7, and cut parts complexity by up to 70 percent. Nissan’s task force has already identified 4,000 potential savings ideas, with 1,600 of those considered viable. According to reports, even small adjustments—such as reducing the number of headrests in its cars—are being considered as part of this push to lower costs.
Changes To Product Offerings
Despite the significant restructuring, Nissan and its luxury division, Infiniti, are pressing forward with new product plans. Infiniti’s QX60 will take over from the QX50 as the brand’s flagship model, while the upcoming QX65 will replace the QX55, with a potential launch around 2026. On Mercedes’ side, although the A-Class will no longer be produced at Aguascalientes, the GLB will continue with a second-generation model featuring both combustion and electric drivetrains.
Both companies are also looking to future product lines to drive sales. Nissan is set to unveil a series of new models, including the redesigned Leaf and Sentra, a new Elgrand minivan, and a plug-in hybrid Frontier pickup. The company is also bringing back the Xterra SUV in 2028. These new releases, combined with the company’s cost-cutting initiatives, are expected to help Nissan regain financial stability despite the challenges it faces.
Impact On The Industry
The closure of the Aguascalientes plant signals a larger trend in the automotive industry, where manufacturers are increasingly focused on streamlining operations and reducing excess capacity.
Nissan’s decision to cut back on production facilities is part of its ongoing efforts to adapt to a rapidly changing market. The company’s future will depend on its ability to maintain a leaner operation while delivering new and competitive vehicles to its customers.
