Nissan inks deal to make Chery’s UK vehicles at Sunderland facility
Japan’s national flag is reflected on a logo of Nissan Motor Co. at its headquarters in Yokohama, Japan, May 13, 2026. REUTERS/Kim Kyung-Hoon
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June 3 : Japan’s Nissan has signed a deal with Chinese automobile manufacturer Chery to manufacture the latter’s UK passenger vehicles at its Sunderland facility in Britain, the companies said on Wednesday.
Nissan would continue to fully own the Sunderland facility, the statement said.
The Japanese automaker employs around 6,000 workers at the Sunderland plant, which has been a cornerstone of its British presence since the 1980s and has produced models like the Qashqai and Juke crossover SUVs.
According to their non-binding agreement, Nissan aims to start building Chery’s UK passenger vehicles on the plant’s production “Line One” in fiscal 2027.
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The Financial Times had reported in April that Nissan had held talks with Chery to build cars at its Sunderland plant.
The partnership comes amid efforts by Chinese automakers to establish manufacturing operations in Europe to avoid import duties and improve supply chains.
Chery was looking to expand car production in Europe through partnerships with other automakers to use their existing factories, top executives at the Chinese carmaker said at an April event in Paris.
Chery operates in Europe through its eponymous brand and subsidiaries Jaecoo, Jetour and Omoda. It made up 2 per cent of total registrations in Europe between January and April.
Meanwhile, Nissan aims to consolidate its manufacturing operations onto production “Line Two” as it explores ways to secure better plant utilisation, the statement said.
Under CEO Ivan Espinosa, Nissan has been cutting costs aggressively as it looks to turn around its business after years of turmoil. Last year, it announced plans to close seven plants globally and cut about 15 per cent of its workforce.
Source: Reuters
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