Latest news with #R82.2-billion
The Citizen
19-05-2025
- Automotive
- The Citizen
Reports claim Rosslyn to be one of Nissan's plants facing closure
Earlier this month, the struggling brand said it would cut its global workforce by 15% and close seven of its current 17 factories. Nissan will close seven of its current 17 factories by 2027, one reportedly being the Rosslyn Plant outside Pretoria. Photo by MATTHIAS BALK / DPA / dpa Picture-Alliance via AFP Nissan's global restructuring plan, Re:Nissan, will reportedly lead to the closure of its Rosslyn Plant outside Pretoria as part of its factory consolidation from 17 to 10. No chance but to reduce This comes after the Japanese brand announced last week that it would reduce its global workforce by a further 20 000 jobs on top of 9 000 last year, and shut seven factories after posting a record R82.2-billion revenue loss for the 2024 financial year. ALSO READ: Nissan's bleak outlook: revenue down, looming 20 000 job cuts 'The reality is clear. We have a very high cost structure. To complicate matters further, the global market environment is volatile and unpredictable, making planning and investment increasingly challenging,' CEO Ivan Espinosa was quoted by AFP as saying. Under the Re:Nissan plan, the brand will not only reduce its workforce and close plants by 2027, but revise its research and development programmes while also cutting parts complexity as well as vehicle platforms from the current 13 to seven. In the firing line According to the latest report from Reuters, the factories reported for closure consists of the Oppama and Shonan plants in Japan, one of its three facilities in Mexico and the Chennai and Santa Isabel Plants in India and Argentina co-operated by alliance partner, Renault. Nissan's Rosslyn Plant outside Pretoria has been online since 1966. Image: Nissan Global While the latter pair will likely involve Nissan selling its stake as opposed to Renault also withdrawing entirely, seemingly more clear-cut, as per is the closure Rosslyn that currently only produces the Navara for the local and Sub-Saharan African markets. Still committed Despite admittance from Nissan as recent as September last year that is looking into producing a second model as replacement for the NP200, this no longer seems to be the case. '[Rosslyn is what we call] a frame plant and we are looking into a second model because we need a second model to sustain the operation in South Africa. All-new Nissan Patrol will debut locally in 2026. Image: Nissan 'What I can say is that we are looking at [a second model],'Chairperson for the Africa, Middle East, India, Europe and Oceania regions, Guillaume Cartier, said at a roundtable discussion after the unveiling of the all-new Patrol in Abu Dhabi last year. Subsequently, Nissan Managing Director for South Africa and Independent African Markets, Maciej Klenkiewicz, told the media at the launch of the facelift Magnite in November that the unnamed second model is being studied while alluding to brand as having no plans on leaving the South African market. Teaser image of one of the two new SUVs Nissan will bring to market in 2026. Image: Nissan In March, Nissan announced not only the arrival of the Patrol by 2026, but two new SUVs spun-off existing Renault products to be made in Chennai. More later While no word has so far been made by Nissan South Africa, the supposed closing of Rosslyn, which has been in operation since 1966, will have a direct impact on its workforce after the initial work cut of 400 in 2023 as a result of the NP200's departure. In its statement, Nissan said will adopt a 'market specific approach' with Japan, Europe, the Middle East, China, the United States and Mexico being identified as key markets. As mentioned, expect clearer details about Nissan South Africa and indeed the future of Rosslyn to possibly emerge over the coming weeks and months. NOW READ: Nissan preparing mass product roll-out in renewed market pledge
The Citizen
14-05-2025
- Automotive
- The Citizen
Nissan's bleak outlook: revenue down, looming 20 000 job cuts
Brand will its reduce its production facilities from 17 to 10, which could put the future of the Rosslyn Plant outside Pretoria in the firing line. Nissan has announced that around 15% of its global staff will be cut. Photo by Richard A. Brooks / AFP Nissan posted an annual net loss of $4.5-billion (R82.2-billion) on Tuesday (13 May) while saying it plans to cut 15% of its global workforce and warning about the possible impact of US tariffs. The heavily indebted carmaker, whose merger with Honda collapsed this year, is slashing production as part of its expensive business turnaround plan. 'We must prioritise' 'Nissan must prioritise self-improvement with greater urgency and speed,' CEO Ivan Espinosa told reporters. 'The reality is clear. We have a very high cost structure. To complicate matters further, the global market environment is volatile and unpredictable, making planning and investment increasingly challenging.' Nissan reported a net loss of $4.5-billion for the financial year to March 2025. Its worst ever full-year net loss was 684-billion yen (R85-billion) in 1999-2000, during a crisis that birthed its partnership with Renault. ALSO READ: Nissan's woes deepen as more job cuts loom Renault, which has nearly a 36% stake in Nissan, said Tuesday it expects to take a 2.2-billion euro (R40.2-billion) hit in the first quarter due to Nissan's turnaround plan. Nissan did not issue a net profit forecast for 2025-2026. 'The uncertain nature of US tariff measures makes it difficult for us to rationally estimate our full-year forecast for operating profit and net profit, and therefore we have left those figures unspecified,' Espinosa said. Nissan's shares closed three percent higher Tuesday after reports, later confirmed by the company, that it planned to slash a total of 20 000 jobs worldwide. 'We wouldn't be doing this if it was not necessary to survive,' Espinosa said of the cuts. Junk ratings Nissan, as part of recovery efforts, also said it would 'consolidate its vehicle production plants from 17 to 10 by fiscal year 2027'. 'In China, we will strengthen our market performance by unleashing multiple new-energy vehicles,' it added. A merger with rival Honda had been seen as a potential lifeline but talks collapsed in February when the latter proposed making Nissan a subsidiary. Espinosa said Tuesday that Nissan remained 'open to collaborating with multiple partners', including Honda. The automaker, whose shares have tanked nearly 40% over the past year, appointed Espinosa CEO in March. Ratings agencies have downgraded the firm to junk, with Moody's citing its 'weak profitability' and 'ageing model portfolio'. Of Japan's major automakers, Nissan is likely to be the most severely impacted by US President Donald Trump's 25 percent tariff on imported vehicles, Bloomberg Intelligence analyst Tatsuo Yoshida told AFP ahead of Tuesday's earnings report. Its clientele has historically been more price-sensitive than that of its rivals, he said. So the company 'can't pass the costs on to consumers to the same extent as Toyota or Honda without suffering a significant loss in sales units', he added. ALSO READ: Nissan CEO Makoto Uchida officially steps down
