Nissan and Chery in talks for car production at Sunderland plant
8 reported2 unconfirmed
Nissan has signed a non-binding agreement to explore contract manufacturing for Chinese automaker Chery at its Sunderland factory, according to a report from The Guardian. The Japanese carmaker stated on Wednesday that discussions are ongoing, and if finalized, production for Chery International UK would begin on Sunderland’s production line 1 in the 2027 financial year. The deal would mark the first mass-market Chinese car production in Britain and could secure jobs for about 6,000 workers at the UK’s largest car factory. The Sunderland site produced 273,000 cars in 2025, down 3% from the prior year, and is running below its maximum capacity of about 600,000 vehicles. Nissan is undergoing a global restructuring, including plant closures in Japan, and last month consolidated Sunderland production into one line without job losses while cutting 900 jobs across Europe. The companies did not specify whether Nissan would produce hybrid or electric cars for Chery in the UK.
What’s reported
Nissan signed a non-binding agreement to explore contract manufacturing for Chery at its Sunderland plant.
If the deal goes ahead, production for Chery International UK would start in the 2027 financial year on production line 1.
The Sunderland factory produced 273,000 cars in 2025, down 3% from the prior year.
The site has a maximum capacity of about 600,000 cars and employs about 6,000 workers.
Nissan last month consolidated Sunderland production into one line without job losses but cut 900 jobs across Europe.
Chery has poured cars into the UK under its Chery, Omoda and Jaecoo brands; the Jaecoo 7 was the top-selling UK model in March.
Nissan previously sold two other plants to Chery: one in Ebro, Spain (production started in April), and one near Pretoria, South Africa (bought in January).
The British government raised the possibility of Jaguar Land Rover building cars for Chery, but a senior executive said it was not under serious consideration.
Open questions
Whether Nissan would produce hybrid or electric cars for Chery in the UK.
The specific terms of the non-binding agreement or timeline for finalization.
Key figures
Massimiliano Messina, chair for several regions including Europe at Nissan
Steve Bush, national officer at Unite, a union representing Nissan workers
Ivan Espinosa, chief executive of Nissan
David Bailey, professor of business economics at the University of Birmingham
Gary Lan, UK chief executive of Omoda and Jaecoo
Sources: The Guardian
