Nissan Motor Co. is planning to allow China's Chery Automobile Co. to build vehicles at its Sunderland plant in the United Kingdom [1].
The potential partnership aims to secure the long-term future of Nissan's largest UK factory following recent production cuts [3]. By opening the facility to a third party, Nissan seeks to increase plant utilization while providing Chery with a critical manufacturing foothold in the UK and European markets [3, 4].
Reports first surfaced on April 16, 2026 [2], indicating that the two companies have engaged in discussions regarding the arrangement. According to some reports, Chery has signed a non-binding memorandum of understanding with Nissan to facilitate the production of its Omoda and Jaecoo models [1]. Other reports said the current stage is ongoing talks [2].
If the agreement proceeds, cars could begin rolling off the Sunderland production line in the 2027 financial year [5]. The move represents a strategic shift for the Sunderland site, which has historically focused on Nissan's own global product lineup.
Chery's entry into the UK market via a local manufacturing partner could allow the Chinese firm to avoid certain import complexities and reduce logistics costs. For Nissan, the deal provides a revenue stream from facility leasing and operational services during a period of industry volatility [3, 4].
“Nissan is planning to allow Chery to build its Omoda and Jaecoo models at the Sunderland plant.”
This move signals a growing trend of 'contract manufacturing' in the automotive sector, where established plants offset the risks of electric transition and fluctuating demand by hosting competitors. For Chery, this is a strategic bridgehead into Europe, while for Nissan, it transforms a fixed asset into a flexible service provider to maintain viability in the UK.
