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Nissan maps out deal to build cars for China’s Chery at its Sunderland plant
The non-binding deal would let Nissan use spare capacity as Chery expands in Europe and Nissan pursues higher plant utilisation.
On Wednesday, Japanese automaker Nissan signed a non-binding memorandum of understanding with Chinese manufacturer Chery to manufacture Chery's UK passenger vehicles at the Sunderland plant in Britain.
Nissan's consolidation of production lines onto a single operation follows a major global overhaul last year that closed seven factories and planned cuts of about 15 per cent of its workforce amid competition from Chinese rivals.
Under the agreement, Nissan aims to begin manufacturing Chery vehicles on production 'Line One' in fiscal 2027, while continuing to produce its own Leaf, Juke and Qashqai models on Line Two.
Chairperson Massimiliano Messina described the agreement as an 'important step forward,' while Nissan confirmed it will retain full ownership of the Sunderland facility and employ all its workforce, which Unite national officer Steve Bush called 'very good news.'
Chery, which employs more than 80,000 people and has produced more than 15 million vehicles, is expanding European manufacturing through partnerships to avoid import duties, as Nissan reported a 533 billion yen loss but indicated it was seeing 'clear signs of a turnaround.
Nissan aims to maximize the production capacity at its UK factory. Recently, it signed an MOU with Chery to explore the possibility of setting up a production line for the Chinese brand, with assembly lines expected to begin operations by 2027.