Nissan is planning on downsizing its global production force by a significant margin, and there is the possibility that its Pretoria-based Rosslyn plant may be on the chopping block.
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It has been a difficult few years for Japanese automaker Nissan, on both the global and international front. The latest to emerge from Yokohama is that the storied automaker was under the process of a significant global restructuring to address financial challenges and adapt to shifting market dynamics. The company plans to reduce its global production capacity by 20%, from 5 million to 4 million vehicles annually by fiscal year 2026. Of its multiple global production plants, South Africa is rumoured to be on a short list for cessation. Within its home market, the Oppama and Shonan plants which have been operational since 1961, are also among those considered for closure. All of these market shifts means 20 000 global jobs are on the line, representing about 15% of its international workforce.
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Last week, the global press agency released a statment detailing the consoldation of Frontier/Nissan Navara production, currently split between Mexico and Argentina, into a single production HUB in the region, centralized at the CIVAC plant in Morelos, Mexico. Earlier on in the year, it was announced that Renault Group would own 100% of Renault Nissan Automotive India Private Ltd (RNAIPL), by acquiring the 51%-shareholding currently held by Nissan.
CAR Magazine reached out to Nissan South Africa for an official comment on its operations locally:
Regarding the recent reports on the potential closure of certain plants, Nissan wants to clarify that this news is not based on any official information of the company.
The statement went on to add that no news can be divulged on which plants will be affected, but that Nissan South Africa remains on operations and the dedicated workforce that drives its success locally.
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The global restructuring comes in response to declining sales, which are most prevalent in both China and the United States. In both markets, Nissan has hinted that challenges have arrived in the form of increased competition from local manufacturers in China and a lack of hybrid models in the U.S. market. Closer to home, the discontinuation of the popular NP200 bakkie in March 2024 after 16 years means that the Rosslyn plant in Pretoria has not been as productive as it once was and local sales success has decreased. Its planned Renault-Nissan-Mitsubishi Alliance successor never came to fruition, and the Navara has remained the sole production model built at the facility that has capacity for 50 000 annual units which maintains operational viability and meets the threshold required for certain government incentives under the Automotive Production and Development Programme (APDP).
Despite these challenges, Nissan has attempted to exapnd its Rosslyn-production export benefactors including the Middle East, Egypt, Libya and Algeria. Two new Indian destined passenger models are also reportedly in the works and new CEO Ivan Spinosa has underaking a “Re:Nissan” recovery plan to sreamline operations, reduce costs and focus on core markets.
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