A potential new chapter in the growing relationship between Nissan and Chinese automotive giant Chery is unfolding in the UK, where the two companies have signed a non-binding Memorandum of Understanding (MoU) to explore contract manufacturing opportunities at Nissan’s Sunderland plant.
The agreement could see Nissan manufacture Chery passenger vehicles at its Sunderland facility from the 2027 financial year, subject to ongoing discussions and the finalisation of a formal agreement.
Under the proposed arrangement, Nissan would retain full ownership of the Sunderland plant, while all employees would remain Nissan staff. Chery vehicles would potentially be produced on the plant’s Production Line One, helping to improve factory utilisation as the Japanese automaker restructures its European manufacturing operations.
Efforts to optimise operations
The development comes shortly after Nissan announced plans to consolidate production activities onto Production Line Two as part of efforts to optimise operations and secure better utilisation of its manufacturing assets.
“This is an important step forward for our operations,” said Massimiliano Messina, chairperson of Nissan Africa, Middle East, India, Europe and Oceania (AMIEO).
“We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.”
While the MoU remains non-binding and both parties stressed that discussions are still ongoing, the announcement highlights the increasing willingness of traditional automotive manufacturers and emerging Chinese brands to collaborate amid growing competition and changing market dynamics.
Partnership in place in South Africa
The proposed UK partnership is particularly noteworthy from a South African perspective, given recent developments involving the two companies locally.
There is an interesting pattern emerging in the relationship between Nissan and Chery. Earlier this year, Nissan South Africa and Chery South Africa reached an agreement relating to the acquisition of Nissan South Africa’s manufacturing assets in Rosslyn, Pretoria. The facility is expected to become the future production hub for Jetour vehicles, including the highly anticipated T1 and T2 SUVs destined for local and export markets. Chery models will be confirmed in 2027.
The latest UK announcement suggests that cooperation between Nissan and the broader Chery Group could extend beyond South Africa, potentially creating new manufacturing and supply-chain synergies across multiple regions.
For Nissan, the arrangement could provide additional production volumes and improve plant efficiency. For Chery, it offers access to established manufacturing expertise and facilities in one of Europe’s most important automotive production centres.
No further details regarding production volumes, vehicle models or investment commitments have been disclosed, with both companies indicating that negotiations remain ongoing.
- Nissan and Chery have signed a non-binding MoU to explore contract manufacturing of Chery vehicles at Nissan’s Sunderland plant in the UK, possibly starting from the 2027 financial year.
- Nissan would retain full ownership of the Sunderland plant, with Chery cars potentially produced on Production Line One, aiding in better factory utilisation amid Nissan’s European restructuring.
- The agreement follows Nissan's recent consolidation efforts to optimize production by focusing activities on Production Line Two to enhance manufacturing asset use.
- This UK collaboration builds on a similar partnership in South Africa, where Chery plans to use former Nissan manufacturing assets in Rosslyn for Jetour SUV production beginning in 2027.
- The partnership highlights growing collaboration between traditional automakers and Chinese brands, aiming to boost manufacturing efficiency and leverage established expertise across regions, though details on volumes and models remain under negotiation.
A potential new chapter in the growing relationship between Nissan and Chinese automotive giant Chery is unfolding in the UK, where the two companies have signed a non-binding
“
“We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.”
While the MoU remains non-binding and both parties stressed that discussions are still ongoing, the announcement highlights the increasing willingness of traditional automotive manufacturers and emerging Chinese brands to collaborate amid growing competition and changing market dynamics.
For Nissan, the arrangement could provide additional production volumes and improve plant efficiency. For Chery, it offers access to established manufacturing expertise and facilities in one of Europe’s most important automotive production centres.
No further details regarding production volumes, vehicle models or investment commitments have been disclosed, with both companies indicating that negotiations remain ongoing.
