NISSAN TO CLOSE FACTORY IN SA

Nissan plans to shut down seven plants worldwide, and South Africa’s plant in Rosslyn has been identified as one of them.

The Japanese car manufacturer’s sales have declined sharply over the last couple of years, with old designs and engines lacking competitiveness believed to be the reasons.

The plant, based in Gauteng, along with plants in Mexico, Argentina, and India, is to close down before 2027.

Two local plants in Japan will also close down.

In its latest annual financial report, Nissan reported a net loss of R85 billion. It’s the third-largest loss on record.

Along with the closure of the plants, as many as 20,000 employees will lose their jobs.

Nissan South Africa commented on the matter, saying: “Regarding the recent reports on the potential closure of certain plants, Nissan wants to clarify that this news is speculative and not based on any official information of the company.”

Recently, Nissan attempted a merger with Honda. The deal collapsed, and a CEO resigned, which tarnished the car manufacturer’s prospects.

Several car manufacturers have closed their branches, or a percentage of them are in South Africa, while the Chinese manufacturers have boasted of year-on-year increases in their sales.

Image credit: Engineering News