Nissan opens door for Sunderland factory to produce Chinese Chery cars

Nissan opens door to Chinese giant Chery to build cars at its Sunderland factory as part of new dealSee more This is Money on Google - save us as a Preferred SourceBy ROB HULL, MOTORING EDITOR Updated: 16:31 BST, 3 June 2026

Nissan has confirmed a deal with Chery to allow it the Chinese giant to manufacture its vehicles at Britain's biggest car factory in Sunderland.The move will help to secure the long-term future of the UK plant after Nissan scaled back production at the site last month.Under a Memorandum of Understanding (MoU) announced on Wednesday, Nissan's second assembly line could start producing Chery vehicles from next year, after talks of a deal emerged in April.Massimiliano Messina, Nissan's head of 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.'Nissan says the MoU is 'non-binding' and that discussions are 'ongoing' between the two companies.No further details of the deal will be made public for the time being, it added.The news comes as 33 cars from Chery's sub-brand Jaecoo suffered fire damage at Southampton docks this morning. It is unconfirmed what triggered the blaze, which appears to have destroyed a number of £27,500 E5 electric SUVs with a total value of almost £1million. Nissan has opened the doors to its Sunderland factory to Chinese carmaker Chery to produce its vehicles in Britain as part of new deal that could reshape motor manufacturing in BritainNissan Sunderland is Britain's biggest car factory, employing 6,000 people and producing 273,322 vehicles last year. The Qashqai and electric Leaf are currently built at the plant in the North East, with the new Juke EV also set to be manufactured there from next year.However, a recent downturn in demand for Nissan cars in China and the US - its two largest markets - has seen the factory running below capacity for months, with the company seeking a Chinese partner to pick up the slack.Under the terms of the deal, the Sunderland facility would remain fully owned by Nissan, with the team at the plant employed by the Japanese company.Nissan confirmed only last month that it will consolidate its two production lines at the factory, with its outputs running at around 50 per cent of available capacity.With Chery set to take over assembly line one at the plant, the deal will provide a much-needed lifeline for Sunderland amid ongoing speculation about its future. Nissan culled seven of its factories worldwide last year as part of a major cost-saving effort. This triggered some 20,000 global job cuts.If Chery does start building cars at the Sunderland plant, it will be a litmus test for other Chinese brands considering shifting production to the UK.While higher energy costs compared with manufacturing in their home country are a stumbling block for some Chinese firms, it could still outweigh the financial strain of shipping tens of thousands of vehicles to Europe each year as demand grows. Nissan Sunderland is Britain's biggest car factory, employing 6,000 people. It produced 273,322 vehicles last year The Qashqai (pictured) and all-new electric Leaf are currently built at the plant in the North East, with the new Juke EV also set to be manufactured there from next yearChery, which owns the Omoda, Jaecoo and Lepas brands - as well as its own marque - is the fastest-growing Chinese group in the UK.In the first four months of 2026, its sales represented six per cent of the UK market, according to figures held by the Society of Motor Manufacturers and Traders.Other car manufacturing giants - including Ford, Stellantis and Volkswagen - have also been in discussions with Chinese groups to utilise idle capacity at European factories.Earlier this week, MG's Chinese parent company SAIC Motor Corp revealed plans to build a car factory in Spain's northwestern region of Galicia.Galicia's leader, Alfonso Rueda, said his administration had given strategic priority to the project, with an initial investment envisaged at around €200million.The project still requires the central government's approval for foreign direct investment. If successful, construction could start next year, with the factory operational in 2028.SAIC (formerly Shanghai Automotive Industry Corporation) suggests the plant could create some 1,000 jobs in the area and produce up to 120,000 units per year. CARS & MOTORING: ON TEST