Nissan to sell South African manufacturing assets to China’s Chery Automobile by mid-2026

Nissan Motor plans to sell its manufacturing assets in Rosslyn, South Africa, to the local arm of China’s Chery Automobile for an undisclosed amount, according to a report by Reuters.

Chery SA will acquire the land, buildings and related assets of Nissan facilities in mid-2026 if conditions, including regulatory approvals, are met by then, the Japanese automaker said in a statement.

In a statement to the news portal, a Nissan spokesperson said that if the agreement goes ahead, production of the Navara pickup truck, the plant’s only model, will be stopped in May. The model is produced for the local market and exported to many countries, especially Africa.

The move is part of Nissan’s ongoing transformation strategy, which includes closing or merging seven factories. The company has not confirmed the production capacity of the Rosslyn facility, which was established more than 50 years ago.

“External factors have had a well-known impact on the use of the Rosslyn plant and the future viability of Nissan,” Nissan Africa President Jordi Vila said in a statement. he said.

Nissan has faced significant challenges in South Africa since the production of its high-volume NP200 half-ton pickup truck in 2023.

It competes with Toyota’s Hilux, Ford Ranger and Isuzu’s D-Max pickup trucks, all of which are among the country’s 10 best-selling cars.

Chery SA, the South African subsidiary of China’s third-largest automaker by volume, has not yet commented on the deal.

What will happen to the affected employees?

The company said in a statement that Nissan employees most affected by the situation will be provided with positions similar to the terms and conditions they currently have by Chery SA.

Nissan has stated that it will continue to sell and service vehicles in South Africa, with several launches planned for the 2026 financial year, such as the Tekton and Patrol models.

The report said that in October, the CEO of Chery South Africa stated that the company was exploring options such as using another manufacturer’s facility, creating a joint venture or establishing its own greenfield facility in South Africa.

(With inputs from Reuters.)