Chery to produce vehicles at Nissan plant in the UK from 2027
Jakarta (ANTARA) - Chinese carmaker Chery has reportedly signed a memorandum of understanding (MoU) with Nissan to optimise global manufacturing capacity.
Carnewschina reported on Thursday that Chery will utilise the Line 1 production facility at Nissan’s Sunderland plant in the UK, with operations scheduled to begin in 2027.
Previously, Nissan decided to consolidate production of the Leaf, Qashqai, and Juke models on the Line 2 production line as part of a global efficiency and cost reduction programme.
Nissan CEO Ivan Espinosa said that this move is an important part of the structural reform that the company is currently undertaking.
He also expressed his confidence that Nissan will find a partner to utilise the unused production line.
Chery has not yet revealed which models will be produced in Sunderland.
Combined, Chery’s brands are said to have captured almost 7 per cent of the UK car market in the last two years.
The deal with Nissan also complements Chery’s expansion in Europe after previously establishing a partnership with Spanish brand Ebro to produce vehicles at a former Nissan facility near Barcelona.
This cooperation comes as Nissan faces significant business pressure. In fiscal year 2025, Nissan recorded a net loss of 533.1 billion yen (3.53 billion US dollars), triggered by stagnant global sales, inflation, and the impact of US import tariffs, which reduced operating profit by about 286 billion yen.
Nissan CEO Ivan Espinosa also expects market conditions to remain challenging in fiscal year 2026 due to rising energy costs.
In contrast, Chery recorded strong growth with sales of 247,823 vehicles in May 2026, up 20.5 per cent year-on-year, including 100,304 new energy vehicles (NEVs).
Chery’s exports reached 181,871 units, marking the third consecutive monthly record.
In the period from January to May 2026, Chery sold 1.1 million vehicles and exported 752,755 units, while its global user base has exceeded 19.62 million people.