As Nissan struggles with mounting losses, a new partnership with Chery could help keep its British factory busy.
Nissan’s financial challenges continue to mount, while Chery is enjoying rapid growth and expanding its global lineup. Now, the Chinese automaker could play a key role in helping Nissan make better use of its manufacturing capacity.
Nissan has officially announced the signing of a memorandum of understanding with Chery. Under the agreement, Chery will utilize Nissan’s “Line 1” production facility at the automaker’s plant in Sunderland, England, with production scheduled to begin during Nissan’s 2027 fiscal year.
The partnership follows Nissan’s recent decision to move production of the Leaf, Qashqai, and Juke to “Line 2” as part of a broader global cost-cutting strategy.
Chery has not yet revealed which vehicles will be assembled in Sunderland. However, the Chinese automaker has quickly established a strong presence in the UK through brands such as Jaecoo, Omoda, Lepas, and its own Chery-branded crossover lineup. Combined, Chery’s brands have captured nearly 7% of the British new-car market over the past two years.
Chery’s European expansion is also gaining momentum elsewhere. Earlier, the company reached an agreement with Spanish automaker Ebro to build vehicles at the former Nissan factory near Barcelona, further strengthening its manufacturing footprint across the continent.