Chery to Build Vehicles at Nissan Sunderland Plant as UK Production Begins in 2027

Nissan has announced plans to contract manufacture passenger vehicles for Chery at its Sunderland facility in the United Kingdom, with production scheduled to begin in fiscal 2027. The agreement is based on a non-binding memorandum of understanding between the two automakers and represents a significant step in Chery’s international manufacturing strategy. The arrangement will also help Nissan improve utilization of existing production assets while supporting Chery’s efforts to strengthen its presence across European markets.

The collaboration marks the first large-scale localized vehicle production project in Britain involving a Chinese automotive brand. Chery models will be assembled on Sunderland’s currently unused Line One, while Nissan will retain full ownership of the facility. The Japanese automaker confirmed that all employees and production teams will remain under Nissan management, ensuring continuity of operations while accommodating third-party manufacturing activities within the plant.

Sunderland remains the largest vehicle manufacturing facility in the United Kingdom and employs approximately 6,000 full-time workers. Since becoming a key pillar of Nissan’s European operations in the 1980s, the site has played an important role in regional vehicle production. However, weaker European market recovery following the pandemic and challenges facing Nissan’s global business have contributed to lower factory utilization levels in recent years.

Nissan Seeks Better Capacity Utilization

To improve operational efficiency, Nissan recently implemented a manufacturing consolidation strategy that shifted all internal production activities onto Line Two. This decision released Line One for potential external manufacturing projects and paved the way for the partnership with Chery. The move is expected to enhance overall plant utilization while creating additional production opportunities without requiring significant new facility investments.

Sunderland Production Capacity Overview

Massimiliano Messina, chairperson of Nissan AMIEO, described the agreement as an important step forward for the company’s operations. By utilizing existing infrastructure more effectively, Nissan can improve production economics while maintaining employment and preserving the strategic importance of the Sunderland site within its broader manufacturing network.

Chery Expands Local Manufacturing Footprint

For Chery, the Sunderland project forms part of a broader strategy aimed at increasing manufacturing activities closer to key international markets. Chinese automakers are increasingly pursuing localized production to strengthen supply chains, reduce logistics complexity, and mitigate potential exposure to import tariffs. Establishing manufacturing capabilities within Europe allows companies to respond more quickly to market demand while improving regional competitiveness.

Chery has experienced strong momentum in the United Kingdom through brands including Jaecoo, Omoda, Lepas, and the Chery marque itself. Over the past two years, the combined market share of these brands has approached 7% in the UK market. The China-built Jaecoo 7 plug-in hybrid electric vehicle also emerged as the country’s best-selling model during March, highlighting growing consumer acceptance of the company’s products.

Global Expansion Extends Beyond Britain

The Sunderland arrangement is not Chery’s first use of Nissan-related manufacturing assets. The company continues expanding its overseas production footprint through multiple projects. In Spain, Chery established a joint venture with Ebro to support vehicle production in Barcelona. In South Africa, Chery South Africa is set to acquire assets associated with Nissan’s Rosslyn facility, including land, buildings, and nearby stamping operations.

Beyond manufacturing expansion, Chery’s technology capabilities have attracted interest from international automakers. Reports indicate that India-based Tata Motors plans to license Chery’s premium electric vehicle platform. Tata is expected to utilize the Freelander platform, developed through a joint venture involving Chery and Jaguar Land Rover, to support future vehicle programs. The venture recently announced an additional investment of 3 billion yuan to enhance production capabilities at its Changshu manufacturing facility.

Export Leadership Supports International Growth

Chery remains the largest automotive exporter from China and continues to strengthen its international business. In May, the company reported vehicle sales of 231,944 units, while overseas deliveries reached a record 177,666 vehicles. The combination of strong export performance, expanding production assets, and strategic partnerships positions Chery to further accelerate its global growth ambitions while increasing its presence across Europe and other key international markets.

Frequently Asked Questions

Why will Chery manufacture vehicles at Nissan’s Sunderland plant?
Chery will manufacture vehicles at Nissan’s Sunderland facility to support localized production in Europe and strengthen its regional supply chain presence. The arrangement enables Chery to expand production capacity closer to customers while potentially reducing exposure to import-related costs and trade barriers. For Nissan, the agreement helps improve utilization of available manufacturing assets and supports more efficient use of production infrastructure at one of the United Kingdom’s largest automotive plants.

When will production of Chery vehicles begin at Sunderland?
Production of Chery-branded vehicles at the Sunderland facility is targeted to begin during fiscal 2027. The vehicles are expected to be assembled on Nissan’s currently idled Line One while Nissan continues its own manufacturing operations on Line Two. The plant will remain fully owned and managed by Nissan, and all existing employees will continue to work under Nissan’s operational structure throughout the partnership.

How does this partnership fit into Chery’s global strategy?
The Sunderland manufacturing project aligns with Chery’s broader international expansion strategy focused on localized production and stronger overseas operations. The company has also pursued manufacturing initiatives in Spain and South Africa while expanding technology partnerships globally. By increasing regional production capabilities, Chery can enhance supply chain resilience, improve responsiveness to market demand, and support continued growth in international automotive markets.