Nissan and Chery considering deal for Sunderland

The two manufacturers have signed a non-binding memorandum of understanding, starting a cycle of change around the future of the Nissan factory in Sunderland, England. The underutilized facility could host vehicle production for Chery International UK. If Chery moves to Sunderland, Nissan will remain owner of the site and employer of staff. ©NissanMotor

The legendary British factory in Sunderland may acquire another brand besides Nissan. The Japanese manufacturer will examine this issue after signing a non-binding memorandum of understanding with Chery International UK, a subsidiary of the Chinese Chery group, as announced in a press release on June 3, 2026.

Under the terms of the document, the Sunderland plant will remain wholly owned by Nissan and factory staff will continue to be employed by the Japanese group. The memorandum of understanding also foresees the possibility of Nissan starting production of Chery International UK’s passenger vehicles on the factory’s production line No. 1 in fiscal 2027.

As a reminder, in May Nissan announced its next regrouping of operations on production line No. 2 in order to explore opportunities to optimize the facility’s utilization rate. As for Chery, the group plans to increase its brand launches in Europe, following Omoda and Jaecoo.

“This is a significant step forward for our business,” said Massimiliano Messina, President of Nissan AMIEO. “We look forward to working with Chery International UK over the coming months to achieve the best fit for both companies.” Under the non-binding memorandum of understanding, no further details will be made public at this stage.

A strategy fit for the times

This hand extended by Nissan reminds us of many projects that have emerged in various European countries recently. It is impossible not to mention the Stellantis case, which discussed the establishment of Dongfeng in its Rennes factory (35), as well as preparing the arrival of Leapmotor in Zaragoza, Spain, also thanks to a non-binding memorandum of understanding.

It is also difficult not to draw a parallel with the situation of XPeng and GAC, which found an industrial relay at Magna Steyr in Graz, Austria. BYD continues its efforts to take over the production tools as well as the Hungarian, Turkish and, of course, Spanish facilities that will open in the coming months. Construction selection was again made by SAIC in La Carogne, Spain.