Nissan Completes Global Restructuring with Sale of South African Plants to China's Chery

Nissan Motor has finalized the sale of its Rosslyn assembly plant and associated stamping facility in South Africa to Chinese state-owned automaker Chery Automobile, marking the completion of its planned reduction of seven manufacturing facilities globally. The transaction, scheduled to close mid-2026, transfers all manufacturing assets including land and buildings to Chery South Africa, though Nissan hasn't disclosed financial terms.

This divestment concludes Nissan's strategic initiative under CEO Ivan Espinosa's "Re:Nissan" restructuring plan launched in 2025, which targeted ¥500 billion ($3.16 billion) in cost reductions by March 2027 through factory closures and workforce reductions. The Rosslyn plant's operational metrics reveal underlying challenges: While designed for 45,000-unit annual capacity, production plummeted to just 13,096 vehicles in 2024—a 60% decline from 2019 levels. The facility employed 1,080 workers as of May 2025, with Nissan confirming most will transition to Chery under comparable employment terms.

The transaction occurs amid divergent market trajectories. Nissan's South African sales fell 19.7% year-on-year to 8,715 passenger vehicles in 2025, while Chery nearly doubled its local sales to 46,887 units during the same period according to automotive research firm MarkLines. This contrast highlights the shifting competitive dynamics as Chinese automakers leverage cost advantages and aggressive expansion strategies.

Nissan maintains it will continue South African market operations through imported vehicles, announcing planned launches including the Nissan Tekton and Patrol in fiscal 2026. "External factors have had a well-known impact on the utilization of the Rosslyn plant and its future viability within Nissan," stated Nissan Africa President Jordi Vila, acknowledging deteriorating local business conditions.

The South African sale completes Nissan's global manufacturing consolidation that includes:

• Discontinuing production at Japan's flagship Oppama plant by March 2028
• Closing Mexico's Civac plant by March 2026
• Downsizing operations in Argentina and India
• Executing sale-leaseback arrangements for Nissan's Yokohama headquarters

This strategic retreat coincides with Chinese automakers systematically acquiring manufacturing footholds across emerging markets. Chery's South African expansion follows Suzuki's recent divestment of its Thai plant to Ford and Geely's announcement targeting 6.5 million global vehicle sales by 2030. The transaction underscores the auto industry's accelerating realignment as manufacturers reposition assets toward high-growth segments and regions.