Nissan and Chery SA reached agreement on Friday for the Chinese automaker to acquire Nissan’s manufacturing facilities in Rosslyn, South Africa, securing employment for the majority of workers at the nearly sixty year old plant.
Subject to regulatory approvals, Chery SA will purchase the land, buildings and associated assets of the Nissan facilities, including its nearby stamping plant, in mid 2026. The deal marks a significant shift in South Africa’s automotive landscape as Chery becomes the second Chinese brand to manufacture vehicles locally after BAIC opened a plant in Gqeberha in 2018.
The agreement ensures that the majority of associated Nissan employees will be offered employment by Chery SA on substantially similar terms and conditions as they currently have. The Rosslyn plant employs approximately 1,080 people and has been operational since 1966.
Jordi Vila, Nissan Africa President, acknowledged that external factors have significantly impacted the utilization of the Rosslyn plant and its future viability within Nissan’s global operations. Vila emphasized that the agreement secures employment for most of the workforce while preserving opportunities for the supplier network.
“Nissan has a long and proud history in South Africa and has been working to find the best solution for our people, our customers and our partners,” Vila stated. “Through this agreement we’re able to secure employment for the majority of our workforce thereby also preserving opportunities for our supplier network. This move also ensures that the Rosslyn site will continue contributing to the South African automotive sector.”
Following the acquisition, Nissan will continue offering vehicles and services to customers in South Africa through its sales and distribution operations. The company plans several new vehicle launches for fiscal year 2026 including the Nissan Tekton and Nissan Patrol.
The Rosslyn plant officially opened in 1966 with local assembly of Datsun vehicles and has produced several iconic models over nearly six decades including the 1200 and 1400 bakkie and the NP300 Hardbody. In 2019, Nissan announced a three billion rand investment to upgrade the facility for production of the new Navara, which began in 2021.
Production at Rosslyn has declined sharply in recent years. The facility produced fewer than 20,000 units in 2024, down from nearly 25,000 the previous year. The plant currently manufactures only the Navara bakkie after production of the popular NP200 half tonne bakkie ended in March 2024 without a planned replacement.
The transaction comes as Nissan implements a global recovery plan announced in May 2025 that includes workforce reductions of 20,000 employees and consolidation of production plants from 17 to 10 by fiscal year 2027. Reports in mid 2025 identified Rosslyn among seven facilities potentially facing closure alongside plants in Argentina, India, Mexico and Japan.
Chery has expressed strong interest in South African manufacturing for several months. Tony Liu, Chief Executive Officer (CEO) at Chery Group South Africa, told media outlets in late 2025 that the company was in discussions with government officials and several original equipment manufacturers (OEMs) about building or acquiring a plant.
“South Africa boasts a proud legacy of local vehicle manufacturing, and Chery is committed to strengthening the industry for generations to come,” Liu stated during an interview at South African Auto Week in October 2025.
Verene Petersen, national marketing manager of Chery SA, confirmed the company will produce a sport utility vehicle (SUV) at the plant but has not yet specified which model. The value of the deal and the timeline for when Chery will begin assembling vehicles locally remains to be announced.
Chery returned to South Africa in late 2021 and has rapidly expanded its market presence. The company now ranks among the country’s ten best selling automotive firms and has launched sub brands including Omoda and Jaecoo, with additional brands planned for 2026.
South Africa represents the largest new car market in Sub Saharan Africa, making it strategically important for automotive manufacturers. Liu previously highlighted the country’s role as a gateway into Africa through initiatives such as the African Continental Free Trade Agreement.
The acquisition provides Chery with immediate manufacturing capacity and an established supplier network, avoiding the costs and delays associated with building a new facility from scratch. The Rosslyn plant has annual capacity of approximately 45,000 units, though recent production has fallen far below that level.
Rosslyn serves as one of two Nissan manufacturing plants on the African continent, the other being in Egypt. The facility has historically functioned as Nissan’s light commercial vehicle hub for the region, serving the South African market and exporting to up to 45 countries across Africa.
Industry analysts note that successful manufacturing in South Africa requires substantial export volumes to achieve economies of scale. Nissan struggled to secure sufficient export allocations for Rosslyn, with the plant producing primarily for the domestic market where annual sales of even the best selling vehicles rarely exceed 25,000 units.
The Rosslyn plant underwent significant upgrades in preparation for Navara production, including installation of a new flexible production line and additional facilities. The three billion rand investment in 2019 reflected Nissan’s commitment at the time to expand its South African operations and create approximately 1,200 jobs across the facility and supply chain.
Chinese automotive brands have made aggressive inroads into the South African market in recent years, offering competitively priced vehicles that appeal to cost conscious consumers. Local manufacturing would enable Chery to potentially reduce costs, improve delivery times, and contribute to domestic supply chains while meeting broad based black economic empowerment requirements.
The deal awaits fulfillment of certain conditions including regulatory approvals from South African authorities. Competition authorities typically review such transactions to assess market impact, while industry regulators examine compliance with automotive sector policies and investment requirements.
The Department of Trade, Industry and Competition has not yet commented publicly on the transaction. Government officials have previously emphasized the importance of protecting jobs and maintaining automotive manufacturing capacity as global carmakers restructure their operations.
