Nissan’s European vehicle production hub in the U.K. might soon build cars for China’s part state-owned Chery brand.
Nissan and Chery International UK have signed a non-binding Memorandum of Understanding for Nissan to study manufacturing Chery passenger vehicles at its Sunderland plant, Nissan Motor Co. U.K. announced in its June 3 release.
The proposed arrangement, while non-binding and not assuring that the idea will get beyond the study stage, might partly replace a scrapped $65 million plan that would have used spare capacity to build electric vehicle powertrains for Nissan’s EV powertrain wing, Jatco.
A report in the U.K.’s Guardian newspaper said the Sunderland plant has been operating well below its vehicle production capacity of nearly 600,000 units, reporting in 2025 that just 273,000 cars were built.
If the MoU progresses, the Sunderland facility would remain fully owned by Nissan and staffed by its own employees.
It also includes the possibility that Nissan would aim to begin manufacturing Chery passenger vehicles on the plant's production Line One in 2027.
Nissan announced in May that it would consolidate its manufacturing operations onto production Line Two to investigate opportunities to improve plant utilization, according to its June release.
Discussions are ongoing between the two companies, with no further details being made public at this stage, it added.
“This is an important step forward for our operations,” said Massimiliano Messina, chair of Nissan AMIEO. “We are looking forward to working with Chery International U.K. in the coming months to finalize a position that is optimal for both companies.”
