After nearly a year of rumours about its possible closure, the axe has finally fallen on Nissan’s assembly operations in Rosslyn, Pretoria.

The Japanese group announced last year that it would close seven plants out of a global network of 17 manufacturing sites as the struggling carmaker reported a net loss of $4.5-billion for the financial year that ended in March, amid surging restructuring costs and the fallout of US President Donald Trump’s trade war.

Production in South Africa fell to around 17 000 units in 2024, as the Rosslyn-based facility was forced to end assembly of the popular NP200 half-ton bakkie and continue only with the Navara pickup.

Production volumes at Nissan South Africa (SA) had steadily hovered short of 25 000 units a year for the last few years, down from well over 54 000 units in 2012.

Navara assembly is expected to end in May.

It’s not all bad news for the South African automotive industry and the employees at the Nissan South Africa plant, however, as popular Chinese importer Chery is in the pipeline to acquire the plant.

Chery has been a rising star in the domestic market and currently sells well over 2 000 new vehicles a month, with the broader group – which includes brands such as Omoda, Jaecoo and Jetour – boosting that number to almost 5 000 units a month.

Nissan on Friday confirmed that it had reached an agreement on the sale of its manufacturing assets in Rosslyn.

The Japanese vehicle brand will, however, continue selling vehicles in South Africa and is not exiting the market. New product releases for 2026 will include the Nissan Tekton and Patrol.

Nissan has been active in South Africa since 1961.

Nissan said Chery SA will purchase the land, buildings and associated assets of the Nissan facilities, including its nearby stamping plant, in the middle of this year.

The agreement will see roughly 700 out of the 800 Nissan employees within the plant being offered employment by Chery SA on what Nissan says will be “substantially similar terms and conditions as today”.

“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,” commented Nissan Africa president Jordi Vila.

“External factors have had a well-known impact on the utilisation of the Rosslyn plant and its future viability within Nissan.

“Through this agreement we were able to secure employment for the majority of our workforce, thereby also preserving opportunities for our [parts] supplier network.

“This move also ensures that the Rosslyn site will continue contributing to the South African automotive sector,” said Vila.

A spokesperson for Chery SA told Engineering News Online that the car maker cannot yet confirm what vehicle it aims to assemble at Rosslyn, or the purchase price for the facility.