SUNDERLAND — Nissan has signed a non-binding agreement to explore contract manufacturing for Chery at its Sunderland plant. If the deal proceeds, Nissan would begin assembling vehicles for Chery International UK at Sunderland’s production line 1 in the 2027 financial year.
The agreement could provide job security for approximately 6,000 workers at the Sunderland facility, which currently produces the Qashqai SUV, the Juke crossover SUV, and the electric Leaf. Nissan consolidated production at the plant into one of its two factory lines last month without job losses, though the company cut 900 roles across Europe, including some UK office positions. The Sunderland plant has a maximum annual capacity of about 600,000 cars but produced 273,000 cars in 2025, a 3% decline from the prior year.
Chery sells vehicles in the UK under the Chery, Omoda, and Jaecoo brands. The Jaecoo 7, a plug-in hybrid electric vehicle built in China, was the top-selling car model in the UK in March. The companies have not disclosed whether Nissan would produce hybrid or electric vehicles for Chery in the UK.
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.”
Steve Bush, national officer at Unite, 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.”
David Bailey, a professor of business economics at the University of Birmingham, said it would be “a historic deal.” He added: “Twenty years ago Chinese brands were trying to break into Europe. Now they’re going to build cars in Britain’s biggest car factory. China isn’t just competing with western carmakers anymore: it’s becoming part of the industrial base.”