【By Observer Group, Qi Qian】
After nearly 60 years of production in South Africa, Nissan has announced the shutdown and will sell its assembly plant in Roslyn to Chinese automaker Chery.
According to a statement released by Nissan on January 23, Nissan has reached an agreement with Chery regarding the acquisition of manufacturing assets located at Nissan's facility in Roslyn, South Africa.
The statement said that, subject to certain conditions (including regulatory approval), Chery will acquire the land, buildings, and related assets of the Nissan factory, including the nearby stamping plant, by mid-2026.
Under the agreement, most employees associated with Nissan will be offered employment by Chery, with work terms and conditions largely similar to their current ones.
This transaction has attracted attention from multiple foreign media outlets. Bloomberg believes that the acquisition of Nissan's car manufacturing plant in South Africa is the latest example of the growing global dominance of Chinese automotive brands. Reuters and U.S. Business Insider mentioned that this decision aligns with Nissan's global restructuring plan, as the company strives to optimize operations amid financial losses and low factory capacity.
Nissan announces the shutdown after nearly 60 years of production
Business Insider stated that this sale decision ends speculation about the future of the Roslyn plant, the only production base of Nissan in South Africa, for nearly a year. The manufacturing business of Nissan in South Africa is about to stop, ending nearly six decades of history.
Currently, the factory only produces the Nissan Navara pickup truck, which is expected to cease production in May of this year, with the exact time pending regulatory approval.
Nissan's assembly plant in Roslyn, South Africa - Local media in South Africa
This sale is part of Nissan's broader transformation plan. According to the plan, Nissan will close or consolidate seven factories among its 17 global production bases. This restructuring stems from a difficult year for Nissan. By March, the company had a net loss of $4.5 billion, mainly due to rising restructuring costs and the ripple effects of the trade war initiated by the Trump administration.
In South Africa, Nissan's production volume has declined significantly over the past decade, with production dropping to about 17,000 units in 2024. In recent years, the factory's annual production has consistently been below 25,000 units, far below the level of over 54,000 units in 2012.
Although local production has ceased, Nissan stated it will not exit the South African market. The company plans to continue selling and providing vehicle services locally and intends to launch new models in 2026, including the Nissan Titan and Nissan Patrol.
Jordi Vila, President of Nissan Africa, said: "External factors have had well-known impacts on the utilization rate of the Roslyn factory and its future viability within the Nissan system. Through this agreement, we have ensured employment for most employees, and also retained opportunities for collaboration with the parts supplier network. This move also ensures that the Roslyn factory will continue to contribute to South Africa's automotive industry."
Chery's acquisition further expands its presence in the South African market
Currently, Chery has not confirmed the specific models to be assembled at the Roslyn factory or the purchase price.
Bloomberg noted that this move is the "latest and most significant" indicator of the growing influence of Chinese automakers in South Africa, the largest economy on the African continent. In South Africa, more mature companies from Japan, the United States, and Europe are facing challenges and gradually losing market share.
Reuters mentioned that in October last year, Liu Yun, CEO of Chery South Africa, revealed that the company was considering using another manufacturer's factory, forming a joint venture, or building its own new factory in South Africa.
Liu stated at the time that South Africa holds strategic significance because the country provides access to the region through the African Continental Free Trade Area. He said that Africa's population size is comparable to India, and "has the greatest growth potential in the coming decades, with a young population, and we see great potential."
In recent years, governments across many African countries have introduced policy measures supporting the development of the electric vehicle industry. Reuters cited a report last year predicting that the African electric vehicle market size will reach $21.4 billion by 2027, with an average annual compound growth rate of 10.2% between 2022 and 2027.
The report stated that despite incomplete infrastructure, policy support and potential markets have attracted a large number of Chinese automakers in recent years. Data shows that exports of new energy vehicles from China to Africa increased by 291% year-on-year in 2023. At the same time, many Chinese automakers have also chosen to invest in Africa, expanding cooperation with local companies in the electric vehicle sector.
Chery is currently the second-largest automobile brand in South Africa - Bloomberg chart
As the first country in Africa to issue a policy statement on the manufacturing, sales, and use of electric vehicles, and also one of the most developed countries in Africa, South Africa has naturally become the primary base for Chinese automakers when expanding into the African market.
Data shows that in December last year, Chery surpassed Suzuki Motor Corporation to become the second-largest passenger vehicle seller in South Africa. Bloomberg pointed out that the current car ownership rate in South Africa is one of the lowest in the world, which provides Chery with access to a small but growing market in the African continent.
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Original: toutiao.com/article/7598748729042043442/
Statement: This article represents the views of the author.