Nissan’s Sunderland factory could build Chinese cars under new partnership

The Nissan UK automotive deal would see Chery vehicles manufactured at the Sunderland plant under a new partnership agreement

Workers at Nissan’s Sunderland facility could begin manufacturing Chinese vehicles from next year following a newly announced partnership.

Nissan has joined forces with Chery – a Chinese state-owned manufacturer which ranks as the nation’s third largest marque. The arrangement could see Chery vehicles emerge from the Sunderland plant’s Line One production facility, which was suspended earlier this year as part of extensive cost-cutting measures across Nissan.

Under the terms of the partnership, the Sunderland site would remain entirely under Nissan ownership, with approximately 6,000 employees there continuing to work for Nissan. Talks regarding the proposal are understood to be continuing.

Massimiliano Messina, chairperson Nissan AMIEO, 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 development emerges as Nissan grapples with challenging market conditions – including pressure from Chinese competitors and the transition to electric vehicles – which have triggered a substantial reorganisation of its worldwide operations, encompassing factory closures and redundancies. Sunderland has largely avoided that turbulence and is regarded as one of the manufacturer’s most efficient facilities.

In May, it emerged that roughly 900 positions could be eliminated by Nissan across Europe. Wearside roles were said to be safeguarded by the consolidation of the plant’s two production facilities. Accounts filed in January for Nissan Motor Manufacturing (UK) revealed that the Sunderland facility had received a £900m cash injection from its Japanese parent company, following significant losses. The firm’s turnover declined from £7.4bn to £6.6bn in the year ending 30 March 2025, as vehicle output dropped from 325,000 to 276,000 units, reports Chronicle Live.

Towards the end of last year, the Sunderland plant commenced production of the next-generation Leaf model, providing a further boost to workers at the site. Meanwhile, the carmaker’s ambitious EV36Zero initiative has seen the Sunderland facility receive considerable investment to transform it into a flagship electric vehicle manufacturing hub, integrating nearby renewable energy sources and battery production.

Chery employs more than 80,000 people and has produced in excess of 15 million vehicles. Founded in 1997, the company is headquartered in Wuhu, Anhui.

Unite national officer Steve Bush said: “This is very good news for Nissan’s Sunderland workers and the UK’s automotive industry in general at a time of uncertainly for the sector. Chinese vehicles are increasingly visible on British roads so it makes sense for UK workers to build them here as well.

“To ensure the UK auto sector’s future remains a positive one, Unite is working with industry and government on reforming the ZEV mandate. Without this, car production volumes will be kept artificially low.”