Nissan reveals talks to manufacture Chinese cars on Sunderland production line
Production could begin in 2027
Talks have taken place to look into the feasibility of Nissan UK partnering with car manufacturer Chery to make the Chinese motor giants’ cars on its Sunderland production line.
Nissan has today (June 3) confirmed they have signed a non-binding Memorandum of Understanding (MoU) for the study of contract manufacturing for Nissan to manufacture Chery International UK passenger vehicles at its Sunderland Plant.
Under the terms of the non-binding MoU the Sunderland facility would remain fully owned by Nissan, with the team at the plant employed by Nissan.
The MoU includes the possibility that Nissan would aim to begin manufacturing Chery International UK passenger vehicles on the plant production Line One in financial year 2027.
In May (2025) Nissan UK announced that it would consolidate its manufacturing operations onto production Line Two, to “investigate opportunities to secure better plant utilisation”.
Massimiliano Messina, Chairperson Nissan AMIEO, 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.”
The MoU is non-binding, and discussions are ongoing between the two companies, with no further details to be made public at this stage.
Nissan UK employs around 6,000 people at its Washington manufacturing plant, making it the largest employer in the region. In May (2026) chiefs at the Washington plant confirmed it will be merging two of its lines, but stressed that no jobs were under threat.
The company is, however, in talks to cut around 10% of its European workforce – almost 900 employees – across the continent.
The announcement of the potential agreement with Chery International UK follows the launch of the Nissan’s recovery plan to boost the company’s performance and profits.
Speaking previously about the plan a Nissan spokesperson said: “Under the Re:Nissan recovery plan, we have been taking decisive actions to enhance performance and create a leaner, more resilient business that adapts quickly to market changes.
“As part of this approach we have opened discussions with our European employees with a view to simplifying our structures, reducing complexity, and ensuring we operate in a sustainable and profitable way.
“This includes discussions on proposals for the partial closure of our Barcelona warehouse and to move to an importer model for our Nordic markets.
“We have also announced that we will consolidate production from two lines to one at our Sunderland plant as we assess future opportunities to secure full plant utilisation.”
Nissan announced a major overhaul last year with the closure of seven factories and discussions over the potential loss of 20,000 jobs globally.