Nissan Motor Co. has agreed to produce passenger cars for Chery Automobile at its Sunderland manufacturing complex in Britain, the two companies said on Wednesday. The arrangement is set out in a non-binding agreement that foresees Chery models being built on the plant's "Line One" in fiscal 2027.
Under the terms announced, Nissan will continue to own the Sunderland facility in full while using its production capacity to assemble vehicles for Chery. The Japanese automaker currently employs roughly 6,000 staff at the site, which has been a central element of its UK operations since the 1980s and has produced crossover models including the Qashqai and the Juke.
The deal follows earlier reports that Nissan had been in talks with Chery about using Sunderland for car production. Those reports, published in April, signalled discussions between the two companies prior to the formal announcement.
Chery executives have explained publicly that the company is pursuing increased manufacturing presence in Europe by partnering with established automakers so it can utilise existing factories. The companies said the move aligns with wider efforts by Chinese automakers to set up production inside Europe to mitigate import duties and to improve supply chain logistics.
Details in the agreement are limited at this stage. The arrangement is non-binding, and the scope of production beyond the reference to UK passenger vehicles and the use of Line One has not been specified. Nissan retained ownership of the Sunderland site as part of the announcement, indicating the partnership will rely on Nissan's existing facilities and workforce.
Context and operational notes
The Sunderland plant has been active since the 1980s and has a history of producing Nissan's crossover SUVs. The new agreement would add Chery-branded passenger cars to the plant's output on Line One starting in fiscal 2027 if the arrangement proceeds as planned.
Summary
Nissan and Chery have entered a non-binding agreement for the production of Chery passenger vehicles at Nissan's Sunderland plant in the UK, with plans to use Line One beginning in fiscal 2027. Nissan will remain the facility owner and continues to employ about 6,000 people at the site. The move is part of broader efforts by Chinese automakers to manufacture in Europe to reduce import duties and enhance supply chains.
Key points
- Nissan will manufacture Chery passenger vehicles at its Sunderland plant on Line One, targeting fiscal 2027 for production start.
- Nissan maintains full ownership of the Sunderland facility, which employs approximately 6,000 people and has produced models including the Qashqai and Juke.
- The agreement reflects a strategy by Chinese automakers to build in Europe to avoid import duties and to bolster supply chains.
Risks and uncertainties
- The arrangement is non-binding, leaving the deal subject to change or non-completion before fiscal 2027.
- Specific production volumes, model details beyond Chery UK passenger vehicles, and the full operational implications for the Sunderland plant have not been disclosed.