The acquisition of Nissan’s manufacturing assets in Rosslyn means that, after nearly 60 years of Nissan production in South Africa, the company has now become a vehicle importer only.
Nissan’s manufacturing assets will be acquired by Chinese automaker Chery South Africa. The transaction is subject to the fulfilment of certain conditions, including regulatory approvals, and is expected to be concluded in mid-2026.
Under the agreement, Chery will purchase the land, buildings and associated assets of the Rosslyn facility, including the nearby stamping plant.
Additionally, most of Nissan’s employees at the site will be offered employment by Chery on similar terms and conditions, a point that Nissan Africa president Jordi Vila said was central to the decision.
“Nissan has a long and proud history in South Africa and has been working to find the best solution for our people, our customers and our partners,” Vila said.
He noted that external factors had significantly affected the utilisation of the Rosslyn plant and its future viability within Nissan’s global manufacturing network.
He added that the agreement secured employment for the majority of the workforce, helps preserve opportunities for suppliers, and ensures the site continues contributing to the South African automotive sector.
While Nissan will no longer build vehicles locally, the company stressed that it is not exiting the market.
It will continue to sell and service vehicles in South Africa, with several new model launches planned for the 2026 financial year.
Speaking to the media at the Nissan GTR&Z AGM in Irene, Pretoria, Nissan Africa president Jordi Vila explained that the challenges facing Rosslyn became more noticeable after the end of NP200 bakkie production.
Once that model was discontinued, Nissan needed a replacement to keep the plant operational and financially sustainable.
The company initially explored introducing a new locally built vehicle to replace the NP200, aimed at both the domestic market and exports to Africa, Europe, and the Middle East.
Good news for the local automotive industry
However, those plans were derailed when Nissan entered a major global restructuring towards the end of 2024.
“A number of projects were cancelled. From that point, we knew the solution we had initially planned for was no longer possible,” Vila said.
Although the plant continued to manufacture the Navara for local sale and export into Africa, volumes were insufficient to sustain the operation.
Nissan was then faced with a choice to close the plant or find an alternative that preserved jobs and industrial capacity.
Vila acknowledged that shutting down would have been the easier option from a purely financial perspective, but it was not aligned with the company’s priorities.
“Number one was people,” he said, followed by business continuity, brand and reputation, and then cash flow and profit. “We are a business, but we also have a social responsibility.”
This led to a year-long search for a partner. Several potential buyers expressed interest, but many were focused solely on the physical assets and not the workforce, which Nissan viewed as unacceptable.
Vila said Chery stood out because of its willingness to invest for the long term and to operate within South Africa’s established rules of engagement.
Industry commentator Michael Pashut, owner of CHANGECARS, described Chery’s acquisition of the Rosslyn plant as “fantastic news”.
He said Chery benefits from taking over a world-class, existing facility rather than building a new factory, while the country benefits from job preservation and renewed industrial investment.
Unlike Nissan, which was producing only one model at Rosslyn, Chery plans to manufacture multiple vehicle ranges, making the operation viable.
With Chery and its associated brands continuing to grow rapidly in South Africa, Pashut believes the Rosslyn plant could expand further, reinforcing confidence in a local automotive industry which he believes is set for continued growth.
Source: BusinessTech
