Nissan and Chery Explore Vehicle Manufacturing Partnership at Sunderland Plant

Nissan announced on June 3 that it has signed a non-binding Memorandum of Understanding (MoU) with Chery International UK to evaluate a potential contract manufacturing arrangement at the Sunderland production facility in the United Kingdom. The study will assess opportunities for Nissan to manufacture passenger vehicles for Chery while maintaining operational control of the plant. The initiative reflects efforts by both companies to explore manufacturing collaboration and improve production efficiency within the region.

According to the MoU, the Sunderland facility would remain entirely owned and operated by Nissan. Employees working at the plant would continue to be employed by Nissan, ensuring continuity in workforce management and operational oversight. The proposed arrangement is focused on leveraging existing manufacturing capabilities while preserving the plant’s current organizational structure and ownership model.

Potential Contract Manufacturing Framework

The MoU outlines the possibility of Nissan beginning production of Chery passenger vehicles on Production Line One at the Sunderland facility during FY2027. The companies will continue discussions and assessments over the coming months to determine whether a final manufacturing arrangement can be established. Any future agreement would be subject to the outcome of these evaluations and the strategic objectives of both organizations.

In May 2026, Nissan disclosed plans to consolidate manufacturing activities onto Production Line Two at the Sunderland plant. The move was intended to support an investigation into opportunities for improved plant utilization and operational efficiency. The potential addition of contract manufacturing activities for Chery could complement these broader efforts to maximize production capacity and strengthen the long-term competitiveness of the facility.

A senior executive from Nissan AMIEO (Africa, Middle East, Europe and Oceania) stated that the company looks forward to working closely with Chery in the coming months. The objective is to identify an arrangement that delivers mutual benefits and aligns with the strategic priorities of both businesses as discussions progress toward a possible manufacturing partnership.

Frequently Asked Questions

What is the purpose of the MoU between Nissan and Chery International UK?
The Memorandum of Understanding is intended to evaluate the feasibility of contract manufacturing at Nissan’s Sunderland facility. Under the proposed framework, Nissan would potentially manufacture passenger vehicles for Chery while retaining full ownership and operational control of the plant. The study phase allows both companies to assess manufacturing, operational, and commercial considerations before deciding whether to proceed with a formal agreement. Discussions will continue over the coming months to determine the most suitable arrangement for both parties.

Will Nissan continue to own and operate the Sunderland plant?
Yes, the Sunderland facility would remain fully owned and operated by Nissan under the terms outlined in the non-binding MoU. Employees at the plant would also continue to be employed by Nissan. The proposed collaboration focuses on utilizing existing production capacity rather than changing ownership or management structures. This approach enables Nissan to maintain operational oversight while exploring new manufacturing opportunities that could improve plant utilization and support future production activities.

When could Chery vehicles begin production at Sunderland?
If both companies reach a final agreement following the study period, Nissan aims to begin manufacturing Chery passenger vehicles on Production Line One during FY2027. This timeline remains subject to further evaluations and successful completion of ongoing discussions. The companies are currently assessing the operational and strategic aspects of the proposed arrangement. Any production launch would depend on achieving mutually acceptable terms and confirming the viability of the contract manufacturing model.