Nissan and Chery in talks
Nissan has agreed to look at building cars in northern England for Chinese manufacturer Chery.
The move would secure jobs at the country’s largest car factory and begin mass-market Chinese vehicle production in Britain the first time.
The Japanese carmaker has signed a non-binding agreement and says discussions are ongoing over contract manufacturing by Nissan for Chery, which is part-owned by the Chinese state.
If the deal goes ahead, Nissan aims to begin manufacturing cars for Chery International UK at Sunderland’s production line in the 2027 financial year.
Chery has poured cars into the UK in recent months under its Chery, Omoda and Jaecoo brands. The Jaecoo 7 plug-in hybrid, built in China, was the UK’s best-selling car in March.
Massimiliano Messina, chairman for several Nissan regions including Europe, says: “This is an important step forward for our operations. We are looking forward to working with Chery in the coming months to finalise a position that’s optimal for both companies.”
The Sunderland factory is widely seen as one of Europe’s more efficient plants. It makes the Qashqai, Juke and Leaf. However, it has suffered from turmoil in its parent company and its European vehicle sales have failed to recover to pre-Covid-19 levels.
The company recently consolidated production at Sunderland into one of its two factory lines. That move, which involved no job losses, has opened the way for a Chinese entrant to build on its own line. A Chery deal will provide job security for about 6,000 workers.
