MEXICO CITY — Nissan Motor Co. said it will lay off about 1,000 workers in Mexico at two factories, citing “challenging market conditions.”
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, Nissan Mexico spokesman Herman Morfin told Reuters.
“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 automaker 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.
Nissan’s U.S. sales fell 7.6 percent through November to 1.3 million vehicles. November’s sales plunged 19 percent.
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