Nissan inks deal to make cars by Chery at its UK plant

NISSAN Motor is exploring sharing its factory in Sunderland with China’s Chery, in a deal that would ease concerns about the future of Britain’s largest car plant.

The non-binding memorandum of understanding announced on Wednesday (Jun 3) could see the plant start producing Chery vehicles as soon as 2027. Nissan said in May that it would consolidate manufacturing at the site onto one production line. 

“We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies,” Massimiliano Messina, who heads Nissan’s operations in Europe, said in a statement.

Nissan would continue to fully own the Sunderland facility, the companies said.

The Japanese carmaker employs around 6,000 workers at the plant, which has been a cornerstone of its British presence since the 1980s and has produced models including the Qashqai and Juke crossover SUVs.

The move comes after Chery agreed earlier this year to buy Nissan’s vehicle-manufacturing plant in South Africa. 

At an April event in Paris, top executives from the Chinese company said that it was looking to expand car production in Europe through partnerships with other carmakers to use their existing factories.

In Europe, Nissan is the latest carmaker to seek a deal with a China-based rival to fill spare capacity. Stellantis and others are also exploring deals with Chinese manufacturers.

Chery’s brands, which include Jaecoo and Omoda, have proved popular with British buyers.

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The Jaecoo 7 SUV was the UK’s best-selling car in March, and has earned itself the nickname the “Temu Range Rover” for being a more affordable version of the British brand, in reference to the discount e-commerce platform.

Chery made up 2 per cent of total registrations in Europe from January to April.

The company has a 40 per cent stake in a joint venture with Spanish carmaker EBRO to manufacture vehicles at a former Nissan plant in Barcelona, Spain.

EBRO chair Rafael Ruiz told reporters in May that Chery plans to start production there at the end of this year or the first quarter of 2027. He added that the targeted production level of up to 30,000 cars this year could include Chery models.

Under CEO Ivan Espinosa, Nissan has been cutting costs aggressively as it looks to turn around its business after years of turmoil. In 2025, it announced plans to close seven plants globally and cut about 15 per cent of its workforce. BLOOMBERG, REUTERS