Cash strapped Japanese automaker Nissan Motor has announced plans to sell its manufacturing assets in Rosslyn, South Africa, to China’s Chery Automobile for an undisclosed sum, as the company continues efforts to restructure and conserve cash.
In a statement released on Friday, Nissan said the timing of the transaction and its full financial implications are still under review, noting that the deal remains subject to regulatory approvals. The company did not disclose how the sale would affect its workforce or production footprint in South Africa, saying further details would be communicated once the approval process is complete.
The Rosslyn plant, located near Pretoria, has been a significant part of Nissan’s manufacturing presence on the African continent for decades, producing vehicles primarily for the local and regional markets. The proposed sale signals a further scaling back of Nissan’s global manufacturing operations as it responds to sustained financial pressure, weaker global demand, and the high costs associated with maintaining underutilised facilities.
For Chery Automobile, the acquisition would mark a major expansion of its manufacturing footprint in Africa. The Chinese carmaker has been steadily increasing its presence across the continent through vehicle exports and assembly partnerships, and ownership of an established manufacturing facility would strengthen its ability to produce vehicles locally and compete more aggressively in the African market.
Nissan has been undertaking a broad turnaround strategy in recent years, including asset sales, cost cutting measures, and a reassessment of its global production network. The company has faced ongoing challenges ranging from declining sales in key markets to the costs of electrification and intensifying competition, particularly from Chinese automakers.
South Africa’s automotive sector, which is a cornerstone of the country’s manufacturing base and export economy, will be closely watching the outcome of the transaction. Industry analysts note that while Nissan’s exit from manufacturing assets could raise concerns about job security and industrial capacity, Chery’s entry may help preserve production activity at the Rosslyn site if it commits to long term operations and investment.
Nissan said it would continue to engage with regulators, employees, and other stakeholders as the process moves forward, emphasising that no final decisions have been implemented at this stage. The sale, if completed, would represent another significant shift in the global automotive landscape, underscoring the growing influence of Chinese manufacturers and the ongoing restructuring of legacy automakers worldwide.
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