Nissan Africa reassures South African operations amid potential global plant closures

Banele Ginidza

Nissan Africa has moved to alleviate concerns regarding the potential closure of its plants, particularly the Rosslyn Plant in Pretoria amidst reports of a drastic corporate restructuring plan by its Japanese parent company.

The news has sent waves of anxiety through the workforce and the automotive sector, given Nissan Japan's recently announced intention to consolidate its global production facilities.

In response to Business Report on Tuesday about which plants would be affected, Nissan Africa head of communications and PR, Ramy Mohareb, clarified that the reports about the closure of specific plants were not substantiated by official communication from the company.

Mohareb said the group was still focused on its operations and the dedicated workforce driving its success.

The re:Nissan recovery plan, aimed at cutting the number of global production plants from 17 to 10, has been central to the concerns. This strategy has raised fears that South Africa, along with markets in India and Argentina, may face significant production cuts.

As part of this turnaround, Nissan plans to reduce its global workforce by approximately 20 000 employees between 2024 and 2027, which includes the previously announced reduction of 9 000, an alarming prospect for many in the industry, particularly in South Africa.

This workforce reduction globally covers direct/ indirect roles and contractual roles in manufacturing, SG&A and R&D functions.

In a statement last week, Nissan president and CEO Ivan Espinosa said Nissan will consolidate its vehicle production plants and also streamline its powertrain plants and accelerate job reformation, work shift adjustments, and capital expenditure reductions, including the cancellation of the planned Lithium Iron Phosphate battery plant in Kyushu. 

The market-specific approach will be positioning the US, Japan, China, Europe, Middle East and Mexico as key markets and adopt a customized approach to other markets.

Despite these corporate challenges, Mohareb highlighted recent positive developments within Nissan South Africa.

The company successfully launched the Navara Warrior by Premcar and the Magnite Move Panel Van earlier this year, and it showcased the Navara Stealth at the Nampo Harvest Day event this month, which will be available for purchase from July.

Furthermore, there are plans for a new Patrol model tailored for the South African market, reinforcing the region's importance to the Nissan brand.

Meanwhile, the National Union of Metalworkers of South Africa (Numsa) on Tuesday expressed concern over the lack of formal communication regarding job security. 

Numsa spokesperson Phakamile Hlubi- Majola said the union was planning to meet the management of Nissan soon to get clarity on the situation.

"We must be upfront and state that as a union we have not received formal communication or confirmation and the information we have, is based on media reports. If these reports are true, at least 20 000 jobs are at risk," she said.

"Numsa is planning to meet the management of Nissan soon and we hope to get clarity on the situation. As soon as we do, we will update the public and our members. Numsa wants to assure its members that it stands ready to defend jobs in the sector." .

Visit: www.businessreport.co.za