The Motor Industry Staff Association (Misa), the majority trade union in the retail motor industry representing more than 75,000 members, has urged Chinese car brands to establish manufacturing and assembly plants in South Africa to help boost job creation.
This follows Chery South Africa’s acquisition of the Nissan manufacturing plant in Rosslyn, Pretoria.
Nissan recently said that, subject to the fulfilment of certain conditions including regulatory approvals, Chery South Africa will purchase the land, buildings and associated assets of the Nissan facilities, including its nearby stamping plant, in mid-2026.
South Africa’s automotive manufacturing sector, which contributes nearly 5% to GDP and supports more than 130,000 direct and indirect jobs, is dominated by the seven original equipment manufacturers (OEMs) including Toyota Motors South Africa, Nissan, Isuzu, Ford, VW South Africa, BMW SA and Mercedes-Benz.
The agreement will see most Nissan employees offered employment by Chery South Africa on substantially similar terms and conditions as before.
Rosslyn is one of two Nissan manufacturing plants on the continent, the other being in Egypt.
Chery’s acquisition of the Rosslyn factory would make it the third Chinese brand to manufacture vehicles in South Africa after BAIC opened a plant in Gqeberha in 2018 and Foton began building the Tunland G7 in 2025.
Nissan Africa president Jordi Vila said: “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.”
In 2019, Nissan announced a R3bn investment to upgrade the facility for the production of the new Navara, which began in 2021.
The plant had been underused after production of the popular NP200 half-tonne bakkie ceased in March 2024 after 16 years, with the Navara the only vehicle still built at the factory. Local production of the Navara will end in May and it will be imported in the future.
Nissan South Africa was hard hit by the demise of the high-volume NP200, and the planned NP200 successor, intended to be built on a Renault platform in Russia, was cancelled due to its war in Ukraine.
Nissan South Africa’s model range and market share have shrunk in recent years. Apart from the Navara, Nissan’s local range now comprises only the imported Magnite and X-Trail.
In May 2025 the Japanese parent company announced plans to close seven production plants over the next two years as part of a global recovery plan and speculation had been rife that Rosslyn would be among the casualties.
Misa spokesperson Sonja Carstens told Business Day on Tuesday the union welcomed Chery’s investment “as it would offer employment to the majority of Nissan’s affected employees”.
She said about 800 workers and contractors were affected by the acquisition. “What we are seeing is the massive influx of Chinese brands and that has an impact on retail sales. For instance, someone looking to buy a good second-hand car would opt for a brand new Chinese car with state-of-the-art features for the same price,” Carstens said.
“The Chinese are taking the lead by investing in manufacturing in South Africa. We want to see them investing in manufacturing and assembling the cars locally here because that’s going to be our survival in the long term.
“We have repeatedly urged new Chinese vehicle brands entering the country in 2025 to invest in establishing bigger dealership networks that will create jobs for employees negatively impacted by the closure of non-performing dealerships of traditional brands.”
Misa CEO for operations Martlé Keyter said: “Misa believes that the manufacturing and assembling of Chinese vehicles locally is vital for the survival of the automotive industry, including the local manufacturing of parts and components. With Chery taking the lead in this regard, it will not only sustain jobs but also create more employment opportunities.”
Chery’s acquisition of Nissan comes two months after the National Union of Metalworkers of South Africa (Numsa) and the OEMs signed a three-year, across-the-board pay deal, expiring on June 30 2028, that will see workers getting increases of 7% in July 2025 (backdated) and 5.5% in the outer years. The inflation rate is 3.6%.
Numsa also managed to squeeze out a R12,500 one-off strike-free taxable gratuity while the transport allowance will increase from R3,555.53 to R4,500.
