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 associated assets of Nissan's facilities in mid-2026 if conditions, including regulatory approvals, are done by then, the Japanese automaker said in a statement.
Production of the Navara pickup truck, the plant's only model, will cease in May if the deal proceeds, a Nissan spokesperson told the news portal. The model is manufactured for the local market and exported to several countries, mainly in Africa.
This move is part of Nissan's ongoing turnaround strategy, which involves closing or consolidating seven plants. The company did not confirm the production capacity of the Rosslyn plant, established more than 50 years ago.
"External factors have had a well-known impact on the utilisation of the Rosslyn plant and its future viability within Nissan," Nissan Africa President Jordi Vila said in the statement.
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's Ranger, and Isuzu's D-Max pickup trucks, all of which are among the country's top 10 best-selling cars.
Chery SA, the South African branch of China's third-largest automaker by volume, did not comment on the agreement yet.
What happens to impacted employees?
Most impacted Nissan employees will be provided positions by Chery SA on similar terms and conditions to those they currently have, the company said in its statement.
Nissan stated that it will keep selling and servicing vehicles in South Africa, with several launches scheduled for the 2026 financial year, such as the Tekton and Patrol models.
In October, the CEO of Chery South Africa mentioned that the company was exploring options such as utilising another manufacturer's facility, creating a joint venture, or establishing its own greenfield site in South Africa, the report said.
(With inputs from Reuters.)
