Nissan signs agreement to build cars for China’s Chery at Sunderland plant

Nissan has signed a landmark preliminary agreement to assemble vehicles for Chinese automotive giant Chery at its Sunderland facility.

The non-binding deal represents a historic shift, marking the first time a Chinese brand will engage in large-scale localised production within the UK, providing critical job security for the plant’s 6,000 workers.

If finalised, manufacturing for Chery International UK will commence on Sunderland’s Line One during the 2027 financial year. The announcement follows Nissan’s decision to consolidate its own production—which includes the all-electric Leaf and hybrid crossovers—onto a single line, deliberately freeing up manufacturing capacity for an external partner.

The partnership comes as Chinese brands aggressively expand their electrified vehicle footprints across Europe. Fuelled by advanced battery supply chains and competitive pricing, Chery’s footprint has grown rapidly.

In March, the company’s Chinese-built Jaecoo 7 plug-in hybrid electric vehicle (PHEV) became the top-selling model in the UK. Localising production helps Chinese manufacturers bypass potential import tariffs on low-emission vehicles while integrating directly into European manufacturing bases.

“This is an important step forward for our operations,” said Massimiliano Messina, regional chairperson for Nissan. “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 agreement highlights how traditional western carmakers are increasingly opting to share infrastructure with Chinese electric vehicle powerhouses, rather than competing directly on high production costs.

University of Birmingham business economics professor David Bailey branded the arrangement a “historic deal,” noting the rapidly changing dynamics of global automotive manufacturing.

“Twenty years ago Chinese brands were trying to break into Europe,” Professor Bailey said. “Now they’re going to build cars in Britain’s biggest car factory. China isn’t just competing with western carmakers anymore: it’s becoming part of the industrial base.”

Trade unions also welcomed the decision, viewing it as a pragmatic buffer against broader global restructuring and fluctuating market demand. Steve Bush, national officer at Unite, emphasised the logic of adapting the domestic workforce to the evolving market.

“This is very good news for Nissan’s Sunderland workers and the UK’s automotive industry in general at a time of uncertainty for the sector,” Bush said. “Chinese vehicles are increasingly visible on British roads, so it makes sense for UK workers to build them here as well.”