Nissan Motor plans to maximize the production capacity of its UK factory. It recently signed a memorandum of understanding (MOU) with Chery to explore the opportunity to manufacture Chinese brand vehicles. Production is expected to begin by 2027. Analysts say this is a significant turning point that will make Chery the first Chinese automaker to fully establish a production base in the United Kingdom.
Nissan Motor, a major Japanese car manufacturer, signed a memorandum of understanding (MOU) with Chery Automobile, a leading Chinese carmaker, on 3 June 2026. The agreement is to study the feasibility of producing Chery vehicles at Nissan's plant in Sunderland, United Kingdom. Nissan aims to fully utilize the remaining production capacity of one of the UK's largest car assembly plants.
Back in May 2026, Nissan announced a restructuring plan for production at the Sunderland plant, consolidating vehicle production into a single assembly line instead of the previous two. The factory employs about 6,000 workers and is seeking ways to more efficiently use its remaining production capacity.
This decision to consolidate production lines has freed up space and capacity at Nissan's Sunderland plant, leading to the signing of this non-binding MOU with Chery. The agreement states that the Sunderland factory will remain wholly owned by Nissan, and that employees producing vehicles for Chery will continue to be employed by Nissan.
Massimiliano Messina, Nissan's regional president for Africa, the Middle East, India, Europe, and Oceania, said this collaboration marks an important step in the company's operations. He expressed hope to work closely with Chery UK in the coming months to find mutually beneficial solutions.
Under the MOU, the Sunderland plant is likely to begin producing passenger cars for Chery as early as 2027, provided the feasibility study and related details proceed as planned.
David Bailey, professor of business economics at the University of Birmingham, told Xinhua News Agency that this agreement is a major turning point for Chinese car manufacturers in the UK, viewing it asa "historic deal"that will make Chery the first major Chinese car manufacturer to produce passenger cars industrially in the United Kingdom.
Using the remaining capacity at Nissan's plant will help preserve the UK's important automotive production base in the long term. He noted that it is not Nissan helping Chery, but rather Chery helping Nissan's large plant continue production efficiently.
This agreement reflects the changing role of Chinese automakers in the global automotive industry. Whereas before they focused on exporting cars to the UK market, they are now increasingly becoming domestic producers within the country.
. If Chinese car brands succeed in assembling vehicles in Sunderland, they will shift from being foreign competitors to full domestic producers. China will no longer be competing only against Western carmakers but will become an integral part of the UK's automotive industry structure. .