Nissan’s Sunderland plant could build Chinese Chery vehicles under new agreement

Chinese car maker Chery has signed a non-binding memorandum of understanding with Nissan to potentially build its Omoda and Jaecoo cars at the Sunderland facility, with production possible from 2027

Chinese automotive manufacturer Chery may soon begin producing its vehicles at Nissan’s Sunderland facility following a fresh agreement. The manufacturer, which owns the Omoda and Jaecoo marques, has entered into a non-binding memorandum of understanding with Nissan to assemble its vehicles at the Sunderland site.

The facility would continue to be owned by Nissan under the proposed arrangement, with staff operating it remaining employed by the Japanese manufacturer, though Chery would utilise the plant’s available production capacity for its passenger vehicles.

Should the agreement proceed, Chery vehicles could begin emerging from the Sunderland production line during the 2027 financial year. A statement released in May by Nissan revealed that the marque would be consolidating its manufacturing operations onto a single production line to ‘assess future opportunities to secure full plant utilisation’.

The restructuring would lead to approximately 900 job losses across Europe, although the specific impact on the Sunderland facility – which currently employs around 6,000 staff – was not disclosed at that juncture.

Massimiliano Messina, chairperson Nissan, commented: “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.”

Nissan has confirmed that the present agreement remains non-binding and that ‘discussions are ongoing between the two companies, with no further details to be made public at this stage.’

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.”

The announcement comes as Nissan battles tough trading conditions – including competition from Chinese rivals and the switch to electric vehicles – which have prompted a massive restructuring of its global operation, including plant closures and job losses.

Sunderland has escaped much of that upheaval and is seen as one of the manufacturer’s most productive sites. In May, it came to light that about 900 jobs could be cut by Nissan in Europe but manufacturing posts on Wearside were said to be protected by the combining of the plant’s two production lines.