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Jun 03, 2026
Analyzed by GPT OSS 120B

Nissan Signs Deal to Produce Chery Cars at Sunderland Plant

AI Summary
Nissan has entered a non‑binding agreement to manufacture vehicles for Chinese maker Chery at its Sunderland factory, aiming to start production in the 2027 financial year. The move could safeguard thousands of jobs and reshape the UK’s car‑making landscape.

Nissan announced a non‑binding agreement to explore contract manufacturing for Chery International UK at its Sunderland plant, a step that could secure employment at the country’s largest car factory.

Nissan Signs Non‑Binding Agreement to Build Chery Vehicles

The Japanese automaker confirmed that discussions are ongoing to produce Chery‑branded models on production line 1 in Sunderland. The agreement is non‑binding, with final terms to be negotiated in the coming months.

Projected Timeline and Production Capacity

  • Target start: 2027 financial year.
  • Location: Sunderland plant, line 1.
  • Workforce: Approximately 6,000 employees at the site.
  • Current output: Qashqai, Juke, and Leaf models.

The plant recently consolidated to a single line, freeing capacity for a new Chinese entrant without cutting jobs.

Strategic Implications for the UK Automotive Sector

Partnering with Chery, which has quickly risen in the UK market with models like the Jaecoo 7 PHEV, could bolster Sunderland’s utilisation rates and offset the broader decline in European car sales. The deal also aligns with Chery’s ambition to become a top‑three manufacturer in Britain and its recent investment in a UK R&D hub in Liverpool.

Future Outlook: Potential Shifts in UK Car Manufacturing

If the partnership proceeds, Nissan may expand its hybrid or electric portfolio at Sunderland, though details remain undisclosed. The arrangement could set a precedent for further Chinese‑European collaborations, while the British government continues to explore similar partnerships, such as the speculative involvement of Jaguar Land Rover.