Inside Nissan’s Plans to Build China's Chery Cars in the UK

Japanese carmaker Nissan and Chinese carmaker Chery have signed a memorandum of understanding (MoU) to study whether it can build Chery passenger vehicles at Nissan’s Sunderland Plant in the UK. 

Nissan’s Sunderland Plant is the UK’s largest car manufacturer with over 6,000 employees. The site was reportedly operating at 50% capacity earlier this year as Nissan closed one of its lines. 

Chinese automaker Chery has been aggressively expanding into the UK. Across its three brands, Chery, Omoda and Jaecoo, the automaker has sold 57,217 vehicles in the UK since the start of the year, according to statistics published by the SMMT. 

Nissan’s agreement with Chery

In a press release, Nissan says the MoU includes the possibility that Nissan would aim to begin manufacturing Chery International UK passenger vehicles on one of the production lines at the plant in the financial year 2027.

Massimiliano Messina, Chairperson Nissan AMIEO, said: “This is an important step forward for our operations.

“We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.”

Under the terms of the non-binding MoU the Sunderland facility would remain fully owned by Nissan, with the team at the plant employed by Nissan. 

Nissan’s Sunderland site

Currently, the Nissan plant in Sunderland manufactures the JUKE SUV, the QUASHQAI and the electric Nissan LEAF. 

Earlier this year, the Financial Times reported that the site was operating at 50% capacity. 

There are two production lines at the site. In May, Nissan announced that it would consolidate its manufacturing operations onto one production line to ‘investigate opportunities to secure better plant utilisation.’

The move has paved the way for China’s Chery to open its own production on the site. 

Nissan's UK operations made a pre-tax loss of GB£888m (US$1.19bn) last year with the company receiving a GB£900m (US$1.21bn) boost from its parent company, according to a BBC report. 

The car company's fixed assets became less valuable, with key factors being electrifying car models as well as increased competition, the BBC report said.

In April of 2026, Nissan announced that its first electric JUKE model would be built at the Sunderland site. 

China’s auto expansion into Europe and the UK

1,105,806 new vehicles were imported into the EU from China in 2025, according to statistics published by ACEA. 

In May of 2026 alone, Chery’s three brands sold 11,127 vehicles in the UK, according to statistics from the SMMT. 

The SMMT data showed that the Jaecoo 7, a five seater SUV with an internal combustion engine, was the fourth best selling car in the UK in May - showing that European carmakers are facing a threat across all powertrains, not just electric vehicles. 

Beyond Nissan, other carmakers including Ford and Stellantis (who recently confirmed plans for an electric vehicle to be manufactured in Europe with Leapmotor) have had discussions with Chinese carmakers regarding the use of European plants. 

Nissan's Re:Nissan recovery programme

Nissan still operates under its Re:Nissan programme that it announced following operating losses in 2024. Nissan posted an operating loss of JP¥215.9bn (US$1.36bn) in 2024. 

Nissan Chief Executive Officer, Ivan Espinosa, said when announcing the Re:Nissan plan: “In the face of challenging FY24 performance and rising variable costs, compounded by an uncertain environment, we must prioritise self-improvement with greater urgency and speed, aiming for profitability that relies less on volume.”

The programme aims to cut 20,000 jobs and close seven factories. Last year, Nissan closed a flagship factory in Oppama, Japan and moved production to another site.