Nissan has held discussions with Chinese automaker Chery about using its Sunderland plant in the UK to build vehicles, according to a report by the Financial Times. The talks aim to increase utilization at the facility, which currently operates at roughly 50% capacity, up from below 30% prior to the launch of Nissan’s latest Leaf electric model. The Sunderland site, one of Europe’s largest automotive assembly plants with around 6,000 full-time employees, features separate production lines in multiple buildings, a configuration that could facilitate resource sharing with partner manufacturers.
Sources familiar with the matter caution that negotiations with Chery may not result in a commercial agreement. Over the past year, Nissan has explored similar partnerships with other automakers, including Ford, Stellantis, and Volkswagen, as part of a broader global restructuring strategy that involves closing some plants and reducing its workforce by up to 20,000 positions worldwide.
In addition to the Leaf, the Sunderland factory is slated to build Nissan’s next-generation electric Juke, scheduled for market launch in 2027. Despite the uptick in output, the long-term future of the plant remains under scrutiny as Nissan seeks to optimize asset use and manage costs during the transition to electric vehicles.
Chery has been rapidly expanding its international manufacturing footprint. In January, it agreed to acquire Nissan’s Rosslyn plant in South Africa, with the transaction—including land, buildings, and stamping facilities—expected to close in mid-2026. The company also purchased Nissan’s Barcelona facility in Spain. Chery has committed to retaining the majority of Nissan’s workforce at Rosslyn under compensation packages comparable to current terms.
Industry analysts note that third-party production agreements are becoming more common as automakers seek to improve capacity utilization. In the UK, Chery has emerged as the fastest-growing Chinese automotive group, capturing a 6% market share in March 2026—up from 1% a year earlier.
Source: CNEV Post
