Nissan and Chery International UK explore contract manufacturing of Chery passenger vehicles at Sunderland Plant
Nissan has signed a non-binding MoU with Chery International UK to study manufacturing Chery passenger vehicles at its Sunderland plant, with a potential start in financial year 2027.
2027
What Happened
Nissan and Chery International UK have signed a non-binding Memorandum of Understanding (MoU) to explore contract manufacturing of Chery International UK passenger vehicles at Nissan's Sunderland Plant. Under the terms, the Sunderland facility would remain fully owned by Nissan, with the team employed by Nissan. The MoU also includes the possibility that Nissan would aim to begin manufacturing Chery vehicles on production Line One in financial year 2027.
Nissan announced consolidation of its manufacturing operations onto production Line Two to investigate better plant utilisation.
Nissan and Chery International UK sign non-binding MoU for contract manufacturing study.
Possible start of manufacturing Chery vehicles on Line One, subject to final agreement.
“This is an important step forward for our operations. We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.”
Why this matters
The study could help Nissan better utilize its Sunderland plant capacity by taking on contract manufacturing for another automaker, marking a strategic shift in its operations.
Terms in This Story
- MoU
- A Memorandum of Understanding is a non-binding agreement that outlines the preliminary terms and intentions of a potential partnership.
- Contract manufacturing
- An arrangement where one company produces goods for another company under their brand, often to utilize excess production capacity.
Summarised from the linked release; details can be imperfect — always verify against the original source.