n a move that few expected, Nissan and Mercedes-Benz have officially announced the closure of their joint manufacturing plant in Aguascalientes, Mexico, marking the quiet end of one of the most unique collaborations between Japan and Germany. Less than ten years after its grand opening, the factory that once symbolized cross-continental innovation will shut down completely by mid-2026, closing a chapter that never quite reached its full potential.
A Billion-Dollar Dream With an Abrupt Ending
Back in 2015, the two automakers launched the COMPAS plant — short for Cooperation Manufacturing Plant Aguascalientes — investing a combined $1 billion to bring it to life. The goal was clear: build luxury compact models for Infiniti and Mercedes-Benz, share development platforms, and cut production costs while expanding into the booming North American market.
Production started strong in 2017 with the Infiniti QX50, later joined by the Mercedes-Benz A-Class and GLB. For a moment, the partnership looked like a global success story — until shifting market realities caught up. Falling sales, changing consumer tastes, and the industry’s rapid pivot to electric vehicles slowly drained the project’s momentum.
The End of Production
According to both companies, the Infiniti QX50 and QX55 will go out of production by November 2025, while the last Mercedes-Benz GLB is set to leave the line in May 2026. After that, the plant’s operations will stop entirely.
For Nissan, the decision fits within a wider plan to streamline global production. The Japanese brand intends to reduce its number of factories from 13 to just 7, cutting costs and simplifying its engineering structure to focus on efficiency and profitability.
Mercedes-Benz, on the other hand, is shifting its focus back to Europe and China, where its electric transformation is accelerating. With the company investing heavily in the EQ series and its next-generation EV platforms, keeping a shared facility in Mexico no longer made financial or strategic sense.
A Partnership That Faded Quietly
When the alliance between Nissan and Mercedes-Benz was first announced, it was seen as a bold new model for international cooperation. Born from the larger Renault–Nissan–Daimler partnership, it promised shared innovation in engines, platforms, and technology.
But as the global market evolved, the two brands’ paths began to diverge. Nissan turned its focus to electric innovation, developing cars like the Nissan Ariya, while Mercedes-Benz doubled down on the luxury electric segment with its EQ lineup. In time, the reasons for their collaboration faded — not out of failure, but because each company was chasing a different kind of future.
A Reflection of a Changing Industry
The closure of the COMPAS plant doesn’t just mark the end of a partnership; it highlights how much the global auto industry is transforming. Manufacturers everywhere are rethinking where they build cars as they navigate rising costs, supply chain instability, and the shift toward electrification.
Today, companies are moving away from shared manufacturing projects and leaning toward independent control of production, giving them more flexibility and agility in an unpredictable world.
Some of the factory’s employees will be reassigned to other Nissan plants in Mexico, while Mercedes-Benz will end its local production presence altogether once the final GLB is completed.
