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Chery takes over former Nissan factory in South Africa

Created at 3 Jul · 6:27 PM1 source↑ Market-relevant
IN SHORT

Chinese automaker Chery has formally taken over Nissan's former manufacturing plant in Rosslyn, South Africa. The company plans to invest millions to upgrade the facility and aims to establish it as its African hub, with vehicle production expected to begin in mid-2027.

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Key Numbers

692existing employees retained at the plant
3,000direct and indirect jobs to be created
100,000annual vehicle sales target in South Africa
15,000vehicles expected during ramp-up phase
40%target for local content in initial stage

Who's Involved

Chery
Chinese automaker taking over former Nissan plant
Nissan
Former owner of the South African car manufacturing plant
Zhang
Vice President of Chery Auto, outlined long-term goals for the plant
Zhang Guibing
Executive Vice President of Chery Auto, discussed supplier plans

↳ Why This Matters

This acquisition marks a significant expansion for Chery into the African market, potentially boosting local employment and the automotive sector in South Africa. It also reflects the broader trend of Chinese automakers seeking growth opportunities overseas.

Key facts

  • Chery has formally acquired Nissan's former car manufacturing plant in Rosslyn, South Africa.
  • The company plans to invest millions to upgrade the facility and add machinery.
  • Chery intends to use the plant as its African hub for manufacturing, exports, research and development, and regional operations.
  • The project is expected to create approximately 3,000 direct and indirect jobs.
  • Vehicle production is scheduled to commence in mid-2027.
  • Initial production will include Jetour T series, Jaecoo J5, and Chery Tiggo 4 SUVs, with the Jaecoo J5 available in ICE and NEV versions.

China's Chery has officially taken possession of Nissan's former car manufacturing plant located in Rosslyn, South Africa. The acquisition, announced in January, was finalized on Friday. Chery executives stated that the company will invest millions of dollars to upgrade the facility and install new machinery in preparation for vehicle production, which is slated to begin in mid-2027.

Chery intends to leverage the South African plant as its central hub for manufacturing, exports, research and development, and other regional operations across Africa. The company has committed to retaining all 692 current employees and anticipates creating nearly 3,000 additional direct and indirect jobs in manufacturing, supply chains, and related services.

Vice President Charlie Zhang of Chery Auto expressed the company's long-term vision to transform the Rosslyn plant into a comprehensive automotive center, encompassing R&D, supply chain management, and training. This initiative supports Chery's expansion goals, including exceeding 100,000 annual vehicle sales in South Africa.

Chinese automakers are increasingly expanding their global manufacturing and sales footprints due to intense domestic competition and excess production capacity. Chery plans to initially produce the Jetour T series, Jaecoo J5, and Chery Tiggo 4 sport utility vehicles at the facility. The Jaecoo J5 will be offered in both internal combustion engine and new energy vehicle variants.

While the exact investment amount was not specified, Zhang indicated it would be in the millions of dollars for facility upgrades. During the ramp-up phase in the latter half of 2027, Chery expects to produce 15,000 vehicles. The company also aims for 40% local content in its initial production stages and is actively engaging with tier-1 suppliers. Chery Auto Executive Vice President Zhang Guibing mentioned plans to bring in Chinese suppliers, particularly for electric and intelligent vehicle components.

Frequently asked questions

Chery expects to begin vehicle production at the former Nissan plant in mid-2027.

The project is expected to create nearly 3,000 direct and indirect jobs, in addition to retaining the 692 existing employees.

Initially, the plant will produce the Jetour T series, Jaecoo J5, and Chery Tiggo 4 sport utility vehicles. The Jaecoo J5 will be available in both internal combustion engine and new energy vehicle versions.

Chery aims to establish South Africa as its African hub for manufacturing, exports, research and development, and regional operations, with a goal of exceeding 100,000 annual vehicle sales in the country.

What Happens Next

01Chery to begin facility upgrades and machinery installation.
02Company to survey tier-1 suppliers for local content integration.
03Chery to bring in Chinese suppliers for electric and intelligent vehicle components.
04Vehicle production to commence in mid-2027.

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Cadence

How It Developed

Chery formally took over Nissan's manufacturing plant in Rosslyn, South Africa.
The company plans to spend millions of dollars upgrading the facility.
Chery aims to establish South Africa as its African hub for manufacturing, exports, R&D, and regional operations.
The project is expected to create nearly 3,000 direct and indirect jobs.
Vehicle production is slated to begin in mid-2027, initially producing Jetour T series, Jaecoo J5, and Chery Tiggo 4 SUVs.
The company plans to move towards 40% local content in the initial stage.

Sources

T1
China's Chery takes over former Nissan car factory in South AfricaReuters

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