Nissan may begin producing Chery cars at its plant in the UK — Bloomberg
The Japanese company Nissan Motor Co. is considering sharing its plant in Sunderland with the Chinese automaker Chery Automobile Co. The parties have already signed a non-binding memorandum of understanding, paving the way for potential manufacturing cooperation in the UK.
Under the terms of the agreement, production of Chery vehicles at the British facility could begin as early as 2027. Nissan will remain the sole owner of the plant and the direct employer of the staff.
This agreement is intended to ease tensions surrounding the future of Britain’s largest car plant. Earlier, in May, Nissan announced its intention to consolidate all of its production at this site onto a single line, leaving the other line unused.
Massimiliano Messina, head of Nissan’s European operations, noted that the company looks forward to collaborating with Chery International UK in the coming months. According to him, the goal of this collaboration is to finalize a position that will be optimal for both manufacturers.
Market context and reasons for the partnership:
- Earlier this year, Chery had already agreed to purchase Nissan’s car plant in South Africa.
- Stellantis NV and other global automakers are also seeking ways to collaborate with Chinese competitors to utilize spare factory capacity in Europe.
- The success of Chinese brands in the UK: Chery brands, including Jaecoo and Omoda, are rapidly gaining popularity among British buyers and displacing traditional players. In April, their share of the country’s new car market reached 6.7%, while Nissan’s share stood at just 2.7%.
- The Jaecoo 7 crossover became the best-selling vehicle in the UK in March. Local fans and the media even dubbed it the "Temu Range Rover" due to its resemblance to premium British SUVs at a significantly lower price.
Nissan is the largest employer in Sunderland: more than 6,000 employees work directly at the plant, producing the Qashqai, Juke, and Leaf models, and the company supports another 30,000 jobs in the supply chain.
The future of this industrial giant is now under threat due to European regulatory initiatives known as “Made in Europe.” These initiatives would limit key subsidies for cars manufactured outside the European Union, which poses a critical risk since the EU remains the primary market for the British automotive industry. In addition, Nissan itself is currently undergoing a global restructuring process, which involves factory closures and the elimination of 20,000 jobs worldwide. Given the plant’s significant social importance to a depressed region, the British government has traditionally supported this facility, which serves as a symbol of the country’s industrial strength.
This is reported by Bloomberg.
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As a reminder, the Chinese crossover Jaecoo 7 topped new car sales in the UK in March 2026.
