Rodrigo Centeno, CEO of Nissan Mexicana, confirms that Leaf will no longer be marketed in the Mexican market. However, at a global level, the model will not be discontinued, but will undergo a redesign and reengineering with the aim of expanding its autonomy. Meanwhile, the company will soon launch another e-Power model. Globally, Nissan has several models available, some multipurpose (MPV), such as Serena; in addition to Note and Qashqai. “We are not going to launch MPV in Mexico, we are going to do other things,” said the manager.
e-Power production in Mexico
Nissan manufactures the model Kicks In Mexico, however, the e-Power versions are imported from Thailand, while the X-Trail e-Power is brought from Japan. The reason behind this decision lies in the nature of e-Power technology. Centeno explains that “e-Power is a transition technology that democratizes electrification, but at the same time, requires significant investments.”
Although this technology is effective for the electrification of vehicles, it involves considerable investments and complexities in terms of powertrain architecture. The strategy of consolidating the production of e-Power vehicles in specific markets, such as Thailand and Japan, aims to achieve economies of scale and operational efficiencies that allow for a more aggressive entry in terms of price into the market.
Nissan’s vision is to maintain Mexico as a fundamental pillar in its global manufacturing network
Rodrigo Centeno, CEO of Nissan Mexicana
But with several vehicle manufacturers converting their Mexican plants to produce electric models, the question arises as to whether Nissan will take this step in the short term. “Some manufacturers are already starting to manufacture electric vehicles in the country, and I have no doubt that the capacity and quality of manufacturing in Mexico can support those kinds of strategies. But Nissan is following a somewhat unique route in the asset and resource management,” Centeno said.
Nissan’s CEO clarified that the company is not considering the idea of replacing all of its facilities around the world with electrified plants in the short term. Instead, the strategy focuses on promoting specialization and the creation of economies of scale, with Mexico playing a crucial role in the manufacturing of vehicles with highly efficient internal combustion engines. “We have demonstrated that our production capacity and manufacturing quality in Mexico meet global standards.”
The manager said that this capacity in Mexico continues to be essential in Nissan’s strategy. Recent investments in Mexican plants, with a total amount of 700 million dollars, are aimed at improving the productivity of the plants, strengthening the training of their personnel and continuing to promote the development of local talent.
“These efforts are aligned with Nissan’s vision of maintaining Mexico as a fundamental pillar in its global manufacturing network… The conviction is that, at least in the short term, Mexico will continue producing absolutely efficient internal propulsion engines,” Centeno commented.
“However, the evolution of the automotive industry is heading in that direction (electricity), which will imply the reconversion of all processes directed towards that objective at some point,” he added.