In a significant development for the UK automotive sector, Nissan has entered into a non-binding agreement to explore the assembly of vehicles for Chinese manufacturer Chery at its Sunderland facility. This collaboration, set to commence in the 2027 financial year, aims to bolster job security for the plant’s workforce and marks a notable milestone in the production of mass-market Chinese vehicles in the UK.
Details of the Agreement
The deal, which is still under negotiation, would allow Nissan to utilise its Sunderland production line to manufacture cars for Chery International UK, a subsidiary of the state-owned Chery Automobile Company. This partnership not only promises to safeguard approximately 6,000 jobs at the Sunderland factory but also positions the facility as a pivotal player in the increasingly competitive automotive landscape.
Chery has made substantial inroads into the UK market recently, introducing models under its Chery, Omoda, and Jaecoo brands. Notably, the Jaecoo 7, a plug-in hybrid electric vehicle produced in China, emerged as the best-selling model in the UK in March 2026.
Massimiliano Messina, Nissan’s chair for several regions, expressed optimism about the partnership, stating, “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.”
Sunderland’s Production Landscape
The Sunderland factory, renowned for its efficiency, has historically produced popular models such as the Qashqai SUV, Juke crossover SUV, and the electric Leaf. However, in recent years, the facility has faced challenges stemming from its parent company’s global restructuring efforts and a sluggish recovery in European car sales following the pandemic.
To adapt to these changes, Nissan recently streamlined its operations by consolidating production into one of its two lines, a move that did not result in job losses yet paved the way for Chery to establish its own assembly line. Despite a reduction in overall production, with only 273,000 cars manufactured in 2025—a 3% decline from the previous year—the plant remains crucial for the UK automotive industry.
Steve Bush, national officer at Unite, the union representing Nissan employees, welcomed the news, stating, “This is very good news for Nissan’s Sunderland workers and the UK’s automotive industry in general at a time of uncertainty for the sector. Chinese vehicles are increasingly visible on British roads, so it makes sense for UK workers to build them here as well.”
The Broader Implications for the Automotive Sector
The potential collaboration between Nissan and Chery is indicative of a broader trend within the automotive industry, where traditional European manufacturers are increasingly partnering with Chinese firms to remain competitive. Chinese carmakers, benefiting from state support, lower labour costs, and a stronghold on battery production, have emerged as formidable challengers to their European counterparts.
David Bailey, a professor of business economics at the University of Birmingham, characterised the agreement as “historic.” He remarked, “Twenty years ago, Chinese brands were trying to break into Europe. Now they’re going to build cars in Britain’s biggest car factory. China isn’t just competing with western carmakers anymore; it’s becoming part of the industrial base.”
Moreover, Nissan’s previous sales of two plants to Chery and the establishment of a research and development centre in Liverpool further underline the growing integration of Chinese automotive manufacturers into the UK market. Other European carmakers, including Stellantis and Volkswagen, have also begun collaborations with Chinese firms, indicating a significant shift in the industry dynamics.
Why it Matters
Nissan’s potential partnership with Chery not only promises to provide much-needed job security for thousands of employees in Sunderland but also marks a pivotal moment in the evolution of the UK automotive landscape. As the industry grapples with the challenges of electrification and increased competition from Chinese manufacturers, this strategic collaboration could set a precedent for future partnerships, reinforcing the UK’s position in the global automotive supply chain while adapting to the realities of a rapidly changing market.
