Nissan adds models in SA
THIS WILL MAKE 3 THE NUMBER OF CARS PRODUCED IN THE COUNTRY
Production of NP200 ends this week, resulting in 400 workers in South Africa losing their jobs.
Nissan South Africa is aiming to produce two further models at its plant in Rosslyn, Pretoria, in addition to its Navara one-ton pickup. The carmaker’s MD Maciej Klenkiewicz said on Tuesday their priority was to bring in a successor to the half-ton pickup.
He stressed that introducing a second model for production at the plant is “not only a possibility, that is our goal”.
Klenkiewicz added: “Some programmes are being reviewed and investigated. Of course, our priority is to bring the successor to the half-ton pickup.
“That is still on our agenda and we will do everything to bring it as quickly as possible. But at the same time, we are looking for another model as well.”
Retrenchments
The reference to the successor model to the half-ton pickup relates to the production of the NP200 at the Rosslyn plant ending this week at the end of the model’s lifecycle. This will result in about 400 Nissan SA employees – 25% of its total 1 600 workforce – leaving the company’s employ this week in an employee reduction plan.
These retrenchments became necessary when the company was unable to secure an immediate replacement model for the NP200 for production at its Rosslyn plant. The end of production of the NP200 means the plant will only be producing the Navara model.
Klenkiewicz said the exact number of employees to be retrenched is still the same, possibly a little less than originally communicated.
He said the whole Section 189 of the Labour Relations Act process was successfully concluded and Nissan SA obtained full agreement with the unions for the retrenchments. He described it as “a very difficult and very painful process for everyone”.
New African markets
Klenkiewicz said Nissan SA has managed to partly compensate for the lost NP200 production by entering new markets in Africa. “We have managed to fill a big part of that production, thanks to the new destinations that we have already introduced.
“Our plans are very ambitious. We are going to ramp up production in the second half of the year, thanks to the new destinations as well as trying to find new customers. It is compensating for a big part of that [NP200 production], but not fully.”
Exports of the Navara from the Rosslyn plant are planned to expand this year to include Algeria, Tunisia, Libya, Sudan, and Egypt. Klenkiewicz said the first priority is for Nissan SA to cover all the African countries but admitted they are looking at even more export destinations.
He said the Navara is only produced in a few countries globally, and the Rosslyn plant is much closer to countries surrounding and close to Africa than the Nissan plant in Thailand. “We are investigating all the opportunities,” said Klenkiewicz.
“I cannot confirm anything special today, but this is giving us a big opportunity for the plant and we plan to utilise that for the future.”
Nissan’s plan for Africa has a few pillars, including:
The heritage of Nissan pickups that are designed for Africa is very robust and sporty to match all the roads in Africa;
The expertise of Nissan in the crossover and SUV market segments; and
Electrification over time in Africa. Sherief ElDessouky, Nissan’s managing director: Africa Regional Business Unit, admitted it might take some time to introduce electric vehicles into African markets, but it has plans on how to introduce electrification into the continent, especially with Nissan’s bridging technology, e-Power.