Chinese cars to be built in Britain for first time by major plant | UK | News
Chinese cars will be produced in the UK for the first time after Nissan struck a deal with rival Chinese manufacturer Chery to use spare production capacity at its Sunderland factory on Tyne and Wear.
The deal announced by Nissan on Wednesday will see the Japanese automaker produce vehicles for Jaecoo and Omoda’s parent company Chery starting next year, subject to ongoing negotiations.
The agreement is non-binding and final details, including which models will be produced, are yet to be confirmed.
What does the Nissan and Chery agreement include?
Nissan said it was trying to make better use of spare capacity at its Sunderland plant, which can produce more than 500,000 vehicles a year but has been operating well below that level recently due to weak demand.
Under the proposed regulation, production of Chery branded vehicles will begin in the United Kingdom for the first time, marking a significant change in the British automotive production environment.
Until now, Chinese companies such as SAIC Motor and Geely had only produced vehicles in the UK under historic British marques such as MG, Lotus and The London Taxi Company.
The move reflects the rapid growth of Chinese car brands in the UK market, where companies such as Jaecoo, Omoda and BYD are gaining market share by undercutting their Western rivals.
Why is Nissan making a deal?
Nissan’s Sunderland factory has seen production decline in recent years. According to the Daily Telegraph, the company sold approximately 28,400 vehicles in the UK in the first four months of this year; According to sector data, there was a 13 percent decrease compared to the same period last year.
In contrast, Chinese brands have experienced rapid growth. During the same period, Jaecoo sales increased from 4,300 to 22,800 vehicles, while Omoda increased from 4,100 to 12,300.
BYD also posted strong growth, increasing sales by 11,900 vehicles to 26,400 vehicles.
Industry analysts say the deal could help strengthen Nissan’s UK operations while giving Chery a manufacturing foothold in Europe.
What did the companies say?
Massimiliano Messina, Head of Nissan Europe, said: “This is a significant step forward for our operations. We look forward to working with Chery International UK in the coming months to finalize an optimal position for both companies.”
A spokesman for Chery said the regulation forms part of “an ongoing assessment of future opportunities in the UK market”.
They added: “The UK remains a strategically important market for Chery Automobile Group and the company will continue to explore opportunities that support its long-term objectives while creating value for customers, retail partners and the local industry.”
Union officials welcomed the move and said it could support employment at the Sunderland factory.
Steve Bush, Unite the Union’s national officer for automotive, said: “Chinese vehicles are increasingly appearing on British roads, so it makes sense for UK workers to build them here too.”
