Nissan has entered into a non-binding memorandum of understanding with Chinese automaker Chery to contract manufacture passenger vehicles at its Sunderland plant in the UK, with production slated to begin in fiscal 2027. Under the agreement, Chery models will be built on the facility’s currently idled Line One, while Nissan retains full ownership of the site and continues to employ all production staff.
Located in northeast England, the Sunderland plant is the largest car manufacturing facility in the UK, with around 6,000 full-time employees. Since the 1980s, it has been a key hub for Nissan’s European operations. However, the site has faced underutilization in recent years, at one point running at roughly 50% capacity. In 2025, production totalled 273,000 vehicles, well below its design capacity of approximately 600,000 units.
Last month, Nissan consolidated manufacturing onto Line Two to improve efficiency and free up Line One for third-party use. Massimiliano Messina, chairperson of Nissan AMIEO (Africa, Middle East, India, Europe, and Oceania), described the collaboration as an important step in optimizing plant utilization and strengthening the region’s automotive ecosystem.
For Chery, localizing production in Europe is part of a broader strategy to mitigate potential import tariffs and streamline supply chains. This initiative marks the first instance of large-scale localized production by a Chinese automotive brand in Britain. Chery’s portfolio in the UK includes the Jaecoo, Omoda, Lepas, and Chery marques, which together have approached a 7% market share in the past two years. Notably, the China-built Jaecoo 7 plug-in hybrid was the UK’s top-selling model in March.
Chery is also expanding its overseas footprint through other ventures, including a joint venture with Spanish automaker Ebro for manufacturing in Barcelona and acquiring assets of Nissan’s Rosslyn plant in South Africa. Meanwhile, India’s Tata Motors plans to license Chery’s premium EV platform for future models. As China’s largest auto exporter, Chery reported sales of 231,944 vehicles in May, with 177,666 units sold overseas.
Source: CnEVPost
