Nissan and Chery International UK have signed a non-binding memorandum of understanding to study contract manufacturing at Nissan’s Sunderland plant in Britain.
Under the proposal, Nissan would manufacture Chery International UK passenger vehicles at Sunderland, with possible production on Line One from financial year 2027. Nissan said the plant would remain fully owned by the Japanese carmaker, while the workforce at the site would continue to be employed by Nissan.
The agreement is still at study stage, so it does not confirm final production plans, vehicle models, powertrains or volumes.
Nissan said in May that it would consolidate Sunderland operations onto Line Two as it looked for ways to improve plant use. The Chery study would therefore give Nissan a possible route to fill capacity on Line One without giving up control of the factory.
Nissan Africa, Middle East, India, Europe and Oceania chairman Massimiliano Messina said the agreement was “an important step forward” for Nissan’s 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,” he said.
The Sunderland plant is one of Britain’s most important car factories and employs about 6,000 people. The plant has long produced Nissan models such as the Qashqai and Juke, while Nissan is also preparing its UK operations for future electric vehicle production.
Sunderland produced about 273,000 cars in 2025, against a maximum capacity of about 600,000 units. That gives the Chery talks a wider industrial angle, as the deal could help Nissan lift utilisation while giving Chery a UK production base.
Chery has been expanding in Europe through several brands, including Chery, Omoda, Jaecoo and Jetour. However, Nissan’s official statement referred only to Chery International UK passenger vehicles, with no model or brand confirmed at this stage.
