Chery will manufacture passenger vehicles at Nissan’s Sunderland plant in the United Kingdom under a new agreement between the two automakers, marking a significant step in the Chinese company’s European expansion plans.
Nissan announced that the companies have signed a non-binding memorandum of understanding covering contract manufacturing of Chery vehicles at the Sunderland facility.
Production Planned From 2027
Under the proposed arrangement, production of Chery-branded vehicles is expected to begin during fiscal year 2027.
The vehicles would be assembled on Sunderland’s currently idle Line One production line, which became available following Nissan’s recent manufacturing consolidation efforts.
In May, Nissan announced plans to consolidate production activities onto Line Two as part of a broader effort to improve plant utilization and operational efficiency.
Sunderland Facility Remains Nissan-Owned
Nissan said the Sunderland factory will remain fully owned and operated by the Japanese automaker.
Employees working at the facility will continue to be employed by Nissan, with the agreement focused solely on contract manufacturing services.
“This is an important step forward for our operations,” said Massimiliano Messina, chairperson of Nissan AMIEO.
“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 companies noted that the memorandum remains non-binding and discussions are continuing.
Improving Factory Utilization
The Sunderland plant is the largest automotive manufacturing facility in the United Kingdom and employs approximately 6,000 people.
The site has served as a key production hub for Nissan’s European operations since the 1980s.
However, the facility has faced lower utilization rates in recent years amid weaker vehicle demand in Europe and challenges facing Nissan globally.
According to reports, the plant produced around 273,000 vehicles in 2025, compared with an estimated maximum annual capacity of approximately 600,000 units.
Chery Expands European Presence
For Chery, the partnership supports a broader strategy to expand manufacturing operations in Europe.
Chinese automakers have increasingly pursued localized production in overseas markets to strengthen supply chains and mitigate potential trade barriers.
Chery currently operates several brands in the UK market, including Jaecoo, Omoda, Lepas and the Chery brand itself.
The company has experienced rapid growth in Britain in recent years, with its combined brands gaining market share across multiple vehicle segments.
The agreement would represent the first large-scale localized vehicle production project in the UK involving a Chinese automotive brand, subject to the companies finalizing a definitive agreement.
