Overview
- A non-binding memorandum of understanding announced Wednesday commits Nissan and Chery to study contract manufacturing at Nissan’s Sunderland plant, with production aimed for the 2027 financial year.
- Under the proposal Nissan would retain full ownership of the factory and continue to employ the roughly 6,000-strong workforce, while freed Line One would be used after Nissan consolidates its own models onto Line Two.
- Unite the Union has welcomed the move as a way to protect jobs and the regional supply chain, but both companies stress talks are ongoing and no final commercial agreement has been reached.
- Chery has been building a European footprint by acquiring or repurposing former Nissan sites in Barcelona and Rosslyn and by growing UK sales through its Jaecoo and Omoda brands.
- If finalised, the deal would mark one of the first examples of mass-market Chinese car production in the UK and could shape future factory-sharing or local-production deals, though it will depend on commercial terms, regulatory approvals and negotiation outcomes.