Infiniti SUV production to end as Nissan winds down Mexican JV plant

The latest chapter in Nissan’s restructuring

Nissan’s global shake-up continues, as the company confirms another major plant closure. This time, production in Mexico takes a direct hit, marking the end of Infiniti SUV assembly in the region.

The joint-venture COMPAS facility, shared with Mercedes-Benz, is set to wind down operations. The decision reflects Nissan’s drive to streamline operations and focus on higher-efficiency plants worldwide.

The COMPAS facility’s short-lived journey

Opened in 2017, the COMPAS plant in Aguascalientes was once a symbol of innovation and collaboration between Nissan and Mercedes-Benz. It was designed to produce compact luxury vehicles for both brands.

However, less than a decade later, the partnership has faded. Declining demand and shifting corporate strategies have left the factory struggling to find a sustainable production footing.

What’s driving Nissan’s losses

Nissan attributes much of its financial turbulence to a mix of external risks, including supply chain disruptions, volatile foreign exchange rates, and rising tariffs.

These challenges, coupled with uneven global demand, have forced Nissan to make tough strategic decisions, including abandoning key facilities and reducing production diversity.

Production officially winding down

According to WardsAuto, the Infiniti QX50 and QX55 production will officially end in November 2025, marking the beginning of the facility’s shutdown phase.

The plant will remain partially active until May 2026, allowing Mercedes-Benz to continue producing the GLB SUV, one of its more successful models in the U.S.

The end of Infiniti SUV manufacturing in Mexico

With this move, Infiniti officially exits SUV production in Mexico. The QX50 and QX55, both assembled at the COMPAS plant, are being phased out without confirmed successors having been announced yet.

These two models struggled to meet sales targets, highlighting the brand’s broader challenges in competing with German and Japanese luxury rivals in the North American market.

What this means for Mercedes

While Infiniti bows out, Mercedes-Benz will continue limited production of the GLB SUV at the same site until spring 2026. The compact luxury SUV continues to be a consistent seller in North America.

Once Mercedes shifts production elsewhere, the plant’s closure will be finalized, officially ending the short-lived Nissan-Mercedes collaboration under the COMPAS project.

A reflection of the broader Re: Nissan plan

This closure aligns with Nissan’s ongoing Re:Nissan recovery initiative, aimed at improving financial health and manufacturing efficiency. The plan involves cutting underperforming facilities and optimizing remaining operations.

Through this effort, Nissan aims to focus on its most competitive plants, ensuring each operates closer to full capacity for better cost control and profitability.

Weak sales performance

According to Carscoops, QX50 sales dropped 36.6% in 2025, totaling only 4,994 units in the U.S. Meanwhile, the sportier QX55 coupe SUV fared even worse, attracting just 1,931 buyers over nine months.

The lackluster performance of these models accelerated Nissan’s decision to consolidate production and rethink Infiniti’s lineup strategy for the coming years.

Global capacity cuts take shape

Nissan’s broader goal is to reduce global production capacity from 3.5 million to 2.5 million units (excluding China) and consolidate 17 to 10 plants.. This includes shutting down up to seven factories worldwide.

The automaker also intends to increase utilization rates to nearly 100%, resulting in fewer but more efficient plants that can deliver stronger output and financial sustainability.

Financial outlook shows mixed signals

Despite these tough measures, Nissan’s financial projections show some progress. As of October 30, 2025, Nissan guided to an H1 operating loss of ¥30 billion (improved from ¥180 billion previously) and a full-year operating loss of ¥275 billion for FY2025 (year ending March 2026), guidance reiterated on November 6.

Yet, the full-year forecast remains grim, with an expected loss of ¥275 billion ($1.79 billion), signaling ongoing challenges tied to global instability and market pressure.

A pattern of closures continues

The COMPAS shutdown follows Nissan’s earlier decision to close its CIVAC plant in Cuernavaca, Mexico. The move is part of a continuing wave of consolidations under the brand’s cost-cutting strategy.

Together, these closures represent a major regional retreat, as Nissan scales back North American production to stabilize operations amid shifting consumer demand and tighter margins.

What this means for Infiniti’s future

Infiniti, once Nissan’s flagship luxury brand, faces an uncertain path. With production shrinking and no immediate successor for the QX50 and QX55, Infiniti may pivot toward electrification or platform sharing in the future.

Infiniti’s survival will depend on redefining its identity, striking a balance between premium appeal and global efficiency under the larger Nissan umbrella.

Nissan taps sports-car engineers to tune its lowest-cost EV. See how they’re boosting performance.

The final takeaway

The closure of the COMPAS plant marks another step in Nissan’s deep restructuring. While the decision signals a short-term contraction, it may pave the way for long-term stability and more efficient resource use.

Still, for Infiniti fans, it’s an emotional goodbye as two key SUVs drive off into the sunset, leaving behind a question of what the brand’s next chapter will look like.

Love seeing classic names make a comeback? Check out how Nissan’s bringing back the Xterra with a fresh, modern twist.

Do you think shutting down Infiniti’s SUV production will help Nissan’s recovery or hurt its luxury ambitions? Share your thoughts in the comments.

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This slideshow was made with AI assistance and human editing.