Nissan to make cars for Chery at Sunderland

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

“The MoU includes the possibility that Nissan would aim to begin manufacturing Chery International UK passenger vehicles on the plant’s production Line One in financial year 2027,” says a joint statement.

In May Nissan announced that it would consolidate its manufacturing operations onto production Line Two to investigate opportunities to secure better plant utilisation.

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.”

The car plant, which is the UK’s single largest, has been operating at barely half its 600,000-a-year capacity. Last year it produced 273,000 vehicles including the Qashqai SUV, the Juke crossover SUV and the electric Leaf.

Nissan’s financial crisis has seen it close plants and lay off thousands of workers around the world. Chery, and its sub-brands Jaecoo (pictured) and Omoda, are the fastest-growing in the UK.

Nissan will be acting as as a contract manufacturer for Chery under a deal that is expected to secure the jobs of the 6,000-strong workforce at Sunderland.