Nissan to Build Chery Vehicles at Fully-Owned Sunderland Plant from 2027

Nissan announced on June 4, 2026 that it is considering building cars for Chinese manufacturer Chery at its plant in Sunderland in northeastern England. K. passenger vehicles on the plant’s production Line One in financial year 2027.

The Sunderland factory would remain fully owned by Nissan, and the site’s team would continue to be employed by the Japanese firm, the company said in a statement. Nissan produces the Omoda and Jaecoo brands under the Chery partnership. The agreement comes amid a sharp slowdown in the European car market since 2019.

European manufacturers face factory overcapacity and a price war with Chinese competitors, who are hampered by weak domestic demand and view Europe as a growth market. To improve sales in Europe, Chinese firms are now looking to produce on the continent, either by building factories or by acquiring existing ones.

Chery acquired a former Nissan factory in Barcelona, Spain in 2023, where it aims to produce 200,000 vehicles per year.

Nissan also sold its Rosslyn plant near Pretoria in South Africa to Chery this year. Franco-Italian-American automaker Stellantis, whose brands include Peugeot, Fiat, Jeep and Chrysler, announced last month that it was going to share its Spanish factories in Madrid and Zaragoza, as well as its under-used French factory in Rennes, with Chinese partners.

Other manufacturers, such as Ford and Volkswagen, are considering similar arrangements.