Nissan Raises Alarm Over Chinese Building Cars In Mexico In Less Than 3 Years

Global automakers are growing concerned over Chinese expansion. Ford warns of U.S. market disruption within a decade, while Hyundai suggests the U.S. faces risks similar to Europe’s rapid shift without protective safeguards.

Nissan warns that Chinese automakers could begin producing vehicles in Mexico within two to three years, threatening legacy brands like Nissan that rely on Mexican plants for affordable, U.S.-bound models. By localizing production, Chinese companies could bypass tariffs and leverage lower costs, forcing Nissan to implement aggressive restructuring and cost-cutting measures to remain competitive.

To counter these threats, Nissan is expanding its “Re:Nissan” recovery plan to save ¥500 billion ($3.1B). This includes cutting 20,000 jobs and reducing global production plants from 17 to 10 by fiscal 2027.

Nissan faces growing competition in Mexico as Chinese brands reach 17% market share, threatening its U.S. exports. With Chinese automakers eyeing local production to bypass tariffs, Nissan is cutting 20,000 jobs under its “Re:Nissan” plan. Meanwhile, U.S. lawmakers are pushing to restrict Chinese vehicle access, despite shifting presidential rhetoric on domestic manufacturing.

• See More: Nissan Launches Kicks Crossover SUV In Europe