Nissan set to build Chinese car giant’s vehicles at major Sunderland plant
Chinese carmaker Chery may soon start producing its cars at Nissan’s Sunderland factory following a new agreement.
The manufacturer, which produces the Omoda and Jaecoo brands, has signed a non-binding memorandum of understanding with Nissan to produce its cars at its Sunderland facility.
Under the agreement, the facility will remain owned by Nissan and the team that operates it will be employed by the Japanese automaker, but Chery will produce passenger cars on the facility’s replacement production line.
If the deal goes through, Chery cars could roll off the Sunderland production line in the 2027 financial year.
An announcement by Nissan in May said the brand would consolidate its manufacturing operations into a single production line to “seize future opportunities to secure full utilization of the factory.”
The change will result in the loss of around 900 jobs across Europe, but it was not confirmed at the time how the Sunderland factory, which employs around 6,000 people, would be affected.
Nissan Chairman Massimiliano Messina said: “This is a significant step forward for our operations.
“We look forward to working with Chery International UK over the coming months to finalize a position that is best suited for both companies.”
Nissan confirmed that the current agreement is non-binding and that “discussions are ongoing between the two companies, no further details will be made public at this stage.”
Last month, Japanese automaker Nissan announced that it had reduced losses in the fiscal year through March, but remained in the red due to US tariffs, inflation and increased competition.
Nissan Motor Corp., based in the port city of Yokohama, reported a loss of 533 billion yen ($3.4 billion); This figure is smaller than the 670.9 billion yen recorded in the previous fiscal year.
Nissan’s annual sales fell 5 percent to 12 trillion yen ($76 billion).
Chief Executive Ivan Espinosa said Nissan was making steady progress and saw “clear signs” of a turnaround.
“We have moved beyond recovery and are entering a phase of growth,” he said. “We will build on this momentum through disciplined cost management and faster product implementation, increasing sales and profitability.”
On a quarterly basis, Nissan made a net loss of 282.9 billion yen ($1.8 billion) in the January-March period, compared to a loss of 676 billion yen in the same period a year ago.
Quarterly sales fell nearly 2 percent to 3.43 trillion yen ($22 billion).
