Chery to Acquire Nissan’s South Africa Plant, Accelerating African Expansion

On January 23, Nissan Motor announced it had reached an agreement with Chery Automobile South Africa, under which Chery will acquire Nissan’s vehicle assembly plant and associated stamping facility in Rosslyn, South Africa. Built in the 1960s, the Rosslyn plant has been Nissan’s sole production base in South Africa and previously manufactured several popular pickup models. The financial terms of the deal were not disclosed, and the transaction is expected to be completed by mid-2026, subject to customary closing conditions. This move marks a significant step in Chinese automakers’ accelerated global expansion and their strategic push into African markets. Since re-entering South Africa in 2020, Chery has seen rapid sales growth, becoming the second-best-selling passenger car brand in the country as of December 2023. Company executives have previously stated that South Africa serves as a crucial gateway to the African Continental Free Trade Area (AfCFTA) and expressed strong confidence in the long-term growth potential driven by Africa’s young population. The acquisition also forms part of Nissan’s broader global restructuring initiative, “Re:Nissan,” aimed at addressing financial challenges through measures including plant closures, workforce reductions, and asset divestments. Local labor unions have urged the new owner to safeguard existing jobs.