Nissan Motor Co. and Chery International UK have formalised a non-binding memorandum of understanding to assess the possibility of contract manufacturing at Nissan's Sunderland assembly plant in the United Kingdom.
Under the terms outlined in the memorandum, Nissan would produce passenger vehicles for Chery International UK at the Sunderland facility while retaining full ownership of the plant. The agreement specifies that all current plant employees would remain employed by Nissan, preserving existing labour arrangements and the company's control over the workforce.
The memorandum sets a target to begin manufacturing Chery International UK passenger vehicles on the plant's production Line One during the 2027 financial year. That schedule is described in the document as a target rather than a firm commitment, consistent with the non-binding nature of the memorandum.
Last month, Nissan said it planned to consolidate its manufacturing operations onto production Line Two as part of a broader effort to improve plant utilisation. That prior decision is referenced within the context of the new memorandum, which would see Chery production assigned to Line One if the parties reach a binding agreement.
"This is an important step forward for our operations," said Massimiliano Messina, Chairperson of Nissan AMIEO. "We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies."
The companies emphasise that the memorandum is non-binding and that negotiations are ongoing. No further operational, financial or scheduling details have been released at this time.
From an operational perspective, the arrangement described in the memorandum would allow Nissan to retain asset ownership and employee contracts while potentially filling production capacity on Line One. The plan to consolidate onto Line Two, announced last month, remains a separate element of Nissan's plant utilisation strategy.
Until discussions conclude and any binding agreements are executed, the memorandum serves as an exploratory framework rather than a definitive contract. The limited information currently available leaves several practical and commercial details unresolved.