Nissan Motor Co. and China's Chery Automobile Co. signed a non-binding agreement to manufacture Chery passenger vehicles at Nissan's Sunderland plant [1].
The partnership aims to safeguard jobs at the UK's largest car factory while providing Chery with its first mass-market production foothold in Britain [1, 3].
The agreement was announced June 3, 2026 [1]. Under the terms of the arrangement, vehicle production is expected to begin in 2027 [1, 2].
The Sunderland facility in northern England serves as a critical hub for automotive manufacturing in the region [2]. By utilizing this plant, Chery can establish a local manufacturing presence without building its own dedicated infrastructure from the ground up, a move that addresses long-term concerns regarding the future of the facility [3].
Reports on the status of the partnership vary. Some sources said the arrangement is a signed deal [2], while others said it is a non-binding agreement [1]. Additional reports said the companies are currently in talks to finalize the manufacturing terms [3].
This strategic alignment allows Nissan to diversify the output of its Sunderland site. The move comes as the industry faces shifting demands in the passenger vehicle market and the need for sustainable plant utilization [1, 3].
“Nissan and China's Chery Automobile Co. signed a non-binding agreement to manufacture Chery passenger vehicles.”
This agreement signals a pivot for Nissan to maintain the viability of its UK operations by acting as a contract manufacturer for Chinese competitors. For Chery, it provides a low-risk entry point into the British market by bypassing the massive capital expenditure required to build a new factory. The non-binding nature of the deal suggests that while both parties seek a strategic alliance, the final execution depends on further negotiations and market conditions.
