Nissan has signed a non-binding agreement to explore building cars for Chinese manufacturer Chery at its Sunderland plant, a move that could secure jobs at the UK's largest car factory and mark the first mass-market Chinese car production in Britain. The Japanese carmaker said discussions are ongoing over contract manufacturing, with a target to begin production on Sunderland's line 1 in the 2027 financial year.
Chery, which is part-owned by the Chinese state, has already launched its Chery, Omoda and Jaecoo brands in the UK. The Jaecoo 7, a plug-in hybrid built in China, became the UK's top-selling model in March. Massimiliano Messina, Nissan's chair for several regions including Europe, described the deal as "an important step forward" and said both companies aim to finalise a position optimal for both.
The Sunderland plant, which produces the Qashqai, Juke and Leaf, is running well below its maximum capacity of 600,000 cars, having made 273,000 in 2025. Nissan recently consolidated production into one line, opening space for a partner. Steve Bush of the Unite union called the deal "very good news" for workers, providing job security for around 6,000 employees amid industry uncertainty.
David Bailey, professor of business economics at the University of Birmingham, described it as "a historic deal," noting that Chinese brands are now becoming part of Britain's industrial base. Chery has already bought two former Nissan plants abroad, including one near Barcelona and another in South Africa, and opened a commercial vehicle R&D headquarters in Liverpool.
Other European carmakers are also partnering with Chinese firms: Stellantis produces cars for Leapmotor in Spain, Ford has reportedly agreed to sell part of its Valencia plant to Geely, and Volkswagen has expressed openness to Chinese collaboration. Nissan's chief executive had previously indicated the company was considering a similar arrangement with Dongfeng.
