Nissan maps out deal to build cars for Chery at its Sunderland plant

Non-binding agreement to start building vehicles in 2027 would safeguard jobs at UK’s largest car factory

Nissan has agreed to look at building cars in northern England for Chinese manufacturer Chery, in a move that would secure jobs at the UK’s largest car factory.

The Japanese carmaker on Wednesday said it had signed a non-binding agreement and that discussions were ongoing over contract manufacturing by Nissan for Chery, which is part-owned by the Chinese state.

If the deal goes ahead, Nissan would aim to begin manufacturing cars for Chery International UK at Sunderland’s production line 1 in the 2027 financial year.

Chery has poured cars into the UK in recent months under its Chery, Omoda and Jaecoo brands. The Jaecoo 7, a plug-in hybrid electric vehicle (PHEV) built in China, became the top-selling model in the UK in March.

Massimiliano Messina, chair at Nissan for markets including Europe, said: “This is an important step forward for our operations. We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.”

The Nissan Sunderland factory is widely seen as one of the more efficient plants in Europe, producing the Qashqai SUV, the Juke crossover SUV, and the electric Leaf. However, it has suffered from turmoil in its Japanese parent company and the failure of European car sales to recover to pre-pandemic levels.

Nissan is going through a painful global restructuring process, including the closure of several plants in Japan.

The company last month consolidated production at Sunderland into one of its two factory lines. That move, which did not involve a loss of jobs, opened the way for a Chinese entrant to build on its own line. At the same time, the company cut 900 jobs across Europe, including a small number of office roles in the UK.

Union officials representing workers at Nissan have welcomed the Chinese interest, given it will give job security for the about 6,000 workers. The site is running far below its maximum capacity of about 600,000 cars – in 2025, Sunderland produced 273,000 cars, down 3% on the prior year.

Nissan’s chief executive, Ivan Espinosa, had said last year that the company was considering making cars with Dongfeng, another Chinese carmaker.

The arrival of Chinese manufacturers as a major force in the automotive industry has put enormous pressure on traditional European rivals. Chinese carmakers have been able to undercut European rivals particularly on electrified cars because of large state subsidies, lower labour costs and the country