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Chinese carmaker Chery to build vehicles at Nissan Sunderland plant in major UK deal

  • Nissan set to build Chery vehicles at Sunderland plant
  • New deal will allow Chinese brand to build passenger cars at Nissan’s UK plant
  • Agreement welcomed by union bosses

Time 8:30 am, June 4, 2026

Chinese carmaker Chery is set to ramp up its presence in the UK by building cars at Nissan’s Sunderland plant.

The two manufacturers have announced a new non-binding memorandum of understanding, which could see Chery utilise spare capacity at the North Eastern facility.

If the deal goes through, Chery cars could be rolling off the Sunderland production line in the 2027 financial year.

The news comes after an announcement from Nissan last month, in which the Japanese brand outlined plans to consolidate its manufacturing operations onto a single production line to ‘assess future opportunities to secure full plant utilisation’.

The change would result in some 900 job losses across Europe, although jobs in Sunderland were said to be safe from the chop.

Confirming the landmark agreement, Massimiliano Messina, chairperson Nissan, said: ‘This is an important step forward for our operations.

‘We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.’

Nissan has confirmed that the current agreement is ‘non-binding’ and that ‘discussions are ongoing between the two companies, with no further details to be made public at this stage’.

The news has been heralded by trade unions, with Unite national officer Steve Bush saying: ‘This is very good news for Nissan’s Sunderland workers and the UK’s automotive industry in general at a time of uncertainly 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.’

Jack Williams's avatar

Jack joined the Car Dealer team in 2021 as a staff writer. He previously worked as a national newspaper journalist for BNPS Press Agency. He has provided news and motoring stories for a number of national publications including The Sun, The Times and The Daily Mirror.



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