Nissan and Chery International UK have entered a non-binding Memorandum of Understanding that opens the door to a potential contract manufacturing arrangement at Nissan’s Sunderland Plant. The agreement sets out a study phase to assess whether Chery International UK passenger vehicles could be built on Nissan’s production Line One, with a possible start of manufacturing targeted for financial year 2027.
Under the terms of the agreement, the Sunderland facility will remain fully owned by Nissan, with all staff continuing to be employed by the company. The proposed collaboration is focused on exploring how both parties could improve plant utilisation and operational efficiency, rather than making any immediate structural changes to ownership or workforce arrangements.
The move follows Nissan’s recent announcement that it would consolidate production onto Line Two at the Sunderland site, a strategic shift designed to optimise capacity and evaluate future manufacturing opportunities. This consolidation has created additional flexibility within the plant, allowing room for potential third-party production discussions such as this.
Massimiliano Messina, Chairperson of Nissan AMIEO, described the development as an important step forward for the company’s operations. He noted that Nissan looks forward to working with Chery International UK over the coming months to reach an outcome that is optimal for both organisations.
At this stage, the Memorandum of Understanding remains non-binding, with discussions still ongoing between the two companies. No further operational details have been disclosed. The situation is expected to evolve as feasibility studies progress and both parties assess long-term production alignment at the Sunderland facility.
