Nissan South Africa plans to retrench 25% of its employees – about 400 of its total 1 600 workforce – as part of an employee reduction plan because of its inability to secure a replacement model for its NP200 bakkie for production at its Rosslyn plant in Pretoria.
Production of the Nissan NP200 bakkie is scheduled to end in March 2024 at the end of the model’s extended lifecycle.
Nissan SA announced on Friday that its Rosslyn plant continues to build its flagship Navara pickup, with model upgrades to come and export destinations set to increase, but is preparing to end production of the iconic NP200.
It said the immediate replacement model for the NP200 was planned to be built on an alliance-shared platform in Russia, but the geopolitical situation in Russia meant this model was no longer viable due to significantly reduced volumes.
The alliance is a reference to the Renault-Nissan-Mitsubishi Alliance, while the geopolitical situation in Russia appears to be a reference to Russia’s 2022 invasion of Ukraine and the subsequent war between the two countries, which has resulted in a large number of countries imposing sanctions on Russia.
Nissan SA added on Friday: “In line with our African strategy, securing a second model for production in South Africa is a priority, and a study into an alternative vehicle is already progressing.
“Until our future plans are confirmed, the business will be operating at reduced production volumes and needs to act responsibly to maintain its long-term competitiveness and be ready to secure future opportunities.”
Consultation phase
Nissan SA confirmed it has now entered into a formal consultation phase to restructure the business.
It said this “could result in a reduction in the number of employees across the company”.
“During the consultation phase, we will work with our employees, their representatives, and our partners to minimise the impact on our people and investigate other opportunities for them and for the business to ensure a sustainable future for the brand in South Africa,” it said.
Nissan SA spokesperson Mamokhele Sebatane confirmed to Moneyweb that the company employs about 1 600 individuals and expects about 400 staff to be affected by the employee reduction plan.
However, Sebatane stressed that “we cannot and should not preempt the result of the consultation process”.
“Our focus at this time will be on minimising the impact on employees while taking responsible action needed to safeguard the long-term sustainability of the business,” she said.
Sebatane was guarded in her comments on when it is anticipated that affected employees will leave the employ of Nissan SA.
“We cannot and should not preempt the result of the consultation process for affected employees,” she said.
“Between the conclusion of consultation proceedings and the end of production, Nissan will implement a phased approach for those leaving the employ of the company. Our focus at this time will be on minimising the impact on employees,” said Sebatane.
Comment about the planned retrenchment was requested from the National Union of Metalworkers of South Africa (Numsa), but a response has not yet been received.
For more on this story visit Moneyweb.co.za.
