New deal will allow Chinese brand to build passenger cars at Nissan’s UK plant.
Chinese car manufacturer Chery could soon be building its cars at Nissan’s Sunderland plant following a new deal.
The manufacturer, which produces Omoda and Jaecoo brands, has signed a non-binding memorandum of understanding with Nissan to build its cars at the Sunderland facility.
The site would remain owned by Nissan under the agreement and the team operating it would also be employed by the Japanese car maker, but Chery would build its passenger cars at the plant’s spare production line.
If the deal goes through, Chery cars could be rolling off the Sunderland production line in the 2027 financial year.
An announcement in May by Nissan stated that the brand would be consolidating its manufacturing operations onto a single production line to ‘assess future opportunities to secure full plant utilisation’.
The change would result in some 900 job losses across Europe, though how the Sunderland plant – which employs around 6,000 people – would be affected wasn’t confirmed at the time.
Massimiliano Messina, chairperson Nissan, 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 has confirmed that the current agreement is non-binding and that ‘discussions are ongoing between the two companies, with no further details to be made public at this stage.’
Unite national officer Steve Bush 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.
“To ensure the UK auto sector’s future remains a positive one, Unite is working with industry and government on reforming the ZEV mandate. Without this, car production volumes will be kept artificially low.”
