Nissan and Chery in talks to produce Chinese cars at UK Sunderland plant
Nissan is negotiating a deal with Chinese automaker Chery to use spare capacity at its Sunderland, UK factory to produce Chery-branded vehicles, potentially starting in 2027. A non-binding memorandum of understanding has been signed, marking the first time Chinese-branded cars would be built in Britain. The partnership reflects a trend of European automakers collaborating with Chinese rivals to optimize plant utilization and bypass trade barriers, while offering relief for workers amid Nissan’s reduced production lines.
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Chinese cars to be built in Britain for the first time
Nissan has agreed to use spare capacity at its Sunderland factory to manufacture cars for Chinese automaker Chery, which owns the Jaecoo and Omoda brands. Production is expected to start next year under a non-binding deal currently being finalized. This marks the first time Chinese-branded cars will be built in the UK, reflecting the rapid growth of Chinese automakers in the British market. Nissan's Sunderland plant can produce over 500,000 cars annually but has recently operated at about half capacity due to a slump in demand. The deal is seen as a way to shore up Nissan's UK operations amid fierce competition from Chinese rivals. Union leaders welcomed the news as positive for workers. Chery stated the UK remains a strategically important market.
Yahoo FinanceChina's Chery Nears Deal with Nissan to Build Cars at UK Sunderland Plant
Chinese automaker Chery, owner of Omoda and Jaecoo, has signed a non-binding memorandum of understanding with Nissan to explore assembling its vehicles at Nissan's Sunderland plant in the UK. The deal, targeting production start in financial year 2027, would mark Chery's first manufacturing presence in Britain. It follows Chery's similar partnership in Spain, where it revived a former Nissan plant with Ebro. The MoU comes after Nissan announced closure of one of two Sunderland production lines, offering potential relief for workers. The move highlights Chinese EV makers' growing UK market share, aided by the absence of tariffs on Chinese cars, contrasting with EU and US policies. Chery's entry could set a precedent for Chinese auto manufacturing in the UK and mitigate job loss concerns.
City AMNissan inks deal to make cars by Chery at its UK plant
Nissan Motor is exploring a deal to share its Sunderland, UK factory with Chinese automaker Chery, with production of Chery-branded vehicles potentially starting as early as 2027. The move makes Nissan the latest European carmaker to partner with a Chinese rival to utilize spare manufacturing capacity. The factory in Sunderland, a major Nissan facility, would produce vehicles for the Chinese brand under the agreement. This reflects a growing trend of Chinese automakers expanding into European markets through partnerships with established manufacturers, leveraging existing production infrastructure to bypass trade barriers and accelerate market entry.
The Business TimesNissan inks deal to make cars by Chery at its UK plant
Nissan Motor is exploring a deal to share its factory in Sunderland, UK, with Chinese automaker Chery, with production of Chery vehicles potentially starting as early as 2027. This move makes Nissan the latest European carmaker to partner with a Chinese rival to utilize spare manufacturing capacity. The agreement reflects ongoing trends in the global automotive industry where traditional manufacturers seek collaborations with Chinese electric vehicle and auto companies to remain competitive and optimize plant utilization.
The Business TimesNissan in talks to make cars by Chery at its UK plant
Nissan Motor is in discussions to share its Sunderland, UK factory with Chinese automaker Chery, with potential production of Chery vehicles starting as early as 2027. The move reflects a broader trend of European carmakers partnering with Chinese rivals to utilize spare manufacturing capacity. The factory in Sunderland, a key Nissan facility, could begin producing Chery-branded cars if the talks succeed. This development highlights the growing integration of Chinese automakers into the European automotive market and Nissan's strategy to optimize its UK operations amid changing industry dynamics.
The Business Times