Car giant Nissan is set to begin building vehicles for Chinese carmaker Chery at its flagship Sunderland factory in a major boost for the UK car industry.
The Japanese manufacturer has signed a preliminary agreement with Chery International that could see models from Chery-owned brands Omoda and Jaecoo produced in the North East from 2027.
Under the proposed deal, Nissan would continue to own and operate the Sunderland plant, while Chery vehicles would be built on one of the site's spare production lines, and workers at the factory would remain employed by Nissan.
The move comes as Nissan looks to make fuller use of its Sunderland operation after announcing plans last month to streamline production across Europe.
The Sunderland site currently employs around 6,000 workers and is one of the UK's largest car manufacturing plants.
Industry experts explained the deal could help protect jobs and strengthen the future of the factory as car makers face growing pressure from global competition and the shift towards electric vehicles.
Chinese-owned Chery has rapidly expanded in the UK market over the past year through its Omoda and Jaecoo brands, which sell petrol, hybrid and electric SUVs.
If the agreement goes ahead, this would mark one of the biggest examples yet of a Chinese car brand manufacturing vehicles in the UK.
The Sunderland plant employs 6,000 people, with the partnership hoping to strengthen the UK economy
|CHERY UK/NISSAN
However, the companies stressed the deal is not yet finalised, with Nissan stating that discussions between both sides are still ongoing, and no further details have been confirmed.
Massimiliano Messina, chairperson at Nissan, described the agreement as an "important step forward" for the company's operations.
He said: "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 announcement follows concerns over Nissan's future manufacturing plans in Europe after the company revealed it would consolidate production onto a single line at some plants.
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The Chery brand has partnered with Nissan to see Chinese EVs built in the UK
| CHERYThe wider restructuring plans are expected to lead to around 900 job losses across Europe, although Nissan has not confirmed how Sunderland could be affected.
The Sunderland factory has played a major role in UK car production for decades and currently builds models including the Qashqai and Juke.
Nissan has also committed to producing future electric vehicles at the site as part of its wider EV strategy. Chery, meanwhile, is one of China's fastest-growing automotive companies and has been aggressively expanding into European markets.
The carmaker's Omoda 5 and Jaecoo 7 models have already gained attention in Britain thanks to competitive pricing and high-tech features.
Nissan is moving forward with plans to consolidate its workforce
| NISSANSeveral Chinese brands have been targeting Europe and the UK to expand their EV outreach as demand for affordable electric and hybrid cars continues to rise.
If approved, Chery vehicles are expected to begin rolling off the production line during the 2027 financial year.
Commenting on the news, Unite national officer Steve Bush said: "This is very good news for Nissan's Sunderland workers and the UK’s automotive industry in general at a time of uncertainty for the sector. Chinese vehicles are increasingly visible on British roads, so it makes sense for UK workers to build them here as well.
“To ensure the UK auto sector's future remains a positive one, Unite is working with industry and Government on reforming the ZEV mandate. Without this, car production volumes will be kept artificially low."
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