Chinese car manufacturer Chery could soon be building its vehicles at Nissan's Sunderland plant following a new agreement. The manufacturer, which produces the Omoda and Jaecoo brands, has signed a non-binding memorandum of understanding with Nissan to assemble its cars at the Sunderland facility.
Deal Details
Under the agreement, the Sunderland site would remain owned by Nissan, and the team operating it would also be employed by the Japanese car maker. However, Chery would utilise the plant's spare production line to build its passenger cars. If the deal proceeds, Chery cars could be rolling off the Sunderland production line in the 2027 financial year.
An announcement in May by Nissan stated that the brand would consolidate its manufacturing operations onto a single production line to "assess future opportunities to secure full plant utilisation". This change was expected to result in approximately 900 job losses across Europe, though the impact on the Sunderland plant, which employs around 6,000 people, was not confirmed at the time.
Statements from Nissan
Massimiliano Messina, chairperson of Nissan, 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." Nissan has confirmed that the current agreement is non-binding and that "discussions are ongoing between the two companies, with no further details to be made public at this stage."
Financial Context
Last month, Nissan reported a reduced loss for the fiscal year through March, though the company remained in the red, battered by U.S. tariffs, inflation, and intensifying competition. Nissan Motor Corp., based in Yokohama, reported a 533 billion yen ($3.4 billion) loss, smaller than the 670.9 billion yen loss from the previous fiscal year. Annual sales fell 5% to 12 trillion yen ($76 billion).
Chief Executive Ivan Espinosa said Nissan was making steady progress and seeing "clear signs" of a turnaround. "We have moved beyond recovery and are entering a phase of growth," he said. "We will build on this momentum through disciplined cost management and faster product execution, driving sales and profitability." On a quarterly basis, Nissan had a net loss of 282.9 billion yen ($1.8 billion) in the January-March period, compared to a 676 billion yen loss a year ago. Quarterly sales declined nearly 2% to 3.43 trillion yen ($22 billion).
