The curtains are closing on one of the auto industry’s most ambitious recent collaborations, as Nissan and Mercedes-Benz finalize plans to close their joint manufacturing facility, Cooperation Manufacturing Plant Aguascalientes (COMPAS), located in central Mexico. The closure is a result of the brands’ shifting global strategies, particularly Nissan’s aggressive, downsized path toward financial recovery.
The $1 billion, 50:50 joint venture, which began production in 2017, was intended to be a hub of cross-brand fusion, pooling resources to produce premium compact vehicles for both automakers. COMPAS initially rolled out the Infiniti QX50 and QX55, followed by the Mercedes-Benz A-Class and the highly popular GLB crossover. However, the lifespan of the collaboration proved short. Mercedes pulled the A-Class from the assembly line in 2020, and now, the remaining models are quickly approaching the end of their run.
According to spokespersons for both companies, the final Infiniti QX50 and QX55 will be retired later this month, effectively marking the conclusion of Infiniti’s investment in the site. Mercedes will be the last to depart, with the final GLB crossover scheduled to roll off the line in May 2026. With no remaining production vehicles, the facility will be shuttered by mid-next year.
Part of a Broader Restructuring Effort
While the joint venture is winding down, the closure of Aguascalientes is far more indicative of Nissan’s sweeping internal changes than any failure of the partnership model. COMPAS is the third of seven factories that Nissan intends to close as part of a significant, global restructuring designed to cut costs and streamline operations substantially. This massive effort also includes shuttering the Oppama plant in Japan, the Ciudad Industrial del Valle de Cuernavaca industrial park in Mexico, and design studios in San Diego and São Paulo.
Nissan is betting on a lean recovery. The plan aims to slash the global workforce by 20,000 employees, reduce the number of core vehicle platforms from a sprawling 13 down to a focused 7, and contract annual output by one million units to 2.5 million. Furthermore, a “design simplification” initiative is underway to reduce parts complexity by up to 70 percent, a move so dire that a cost-cutting task force has even identified savings in seemingly trivial areas, such as reducing the number of headrests.
Future of the Affected Models
Despite the factory closure, the vehicles themselves will live on. Infiniti has already lined up the QX60 as the successor to the QX50, and the upcoming QX65—previewed by the sharp QX65 Monograph concept—is set to replace the coupe-style QX55 in time for a potential 2026 launch. Mercedes-Benz will also continue the GLB nameplate into a second generation, mirroring the new CLA with a choice of combustion or fully electric powertrains.
Ultimately, the closure of COMPAS is a high-profile casualty of Nissan’s necessary and brutal downsizing. Alongside the harsh cuts, however, Nissan is simultaneously launching a comprehensive product offensive, including the new Leaf, Sentra, and Elgrand minivan, as well as several models for the Chinese market (the N6, Teana, and a plug-in hybrid Frontier). With a new rear-wheel-drive Skyline and its Infiniti twin on the horizon, and the Xterra set for a return in 2028, the road ahead may be challenging. Still, Nissan clearly has a comprehensive product map to navigate its recovery.
