Nissan’s Sunderland Plant to Manufacture Chery Models on Contract Starting 2027

[International Cooperation] Nissan and Chery have signed a memorandum of understanding to begin contract manufacturing in the UK starting in 2027.

Core Development: Sunderland Plant’s Line 1 to Handle Chery’s Localized Production

Starting from fiscal year 2027 (April 2027), Nissan’s Sunderland plant in the UK will produce vehicles for Chery on its Line 1, operated by Nissan’s existing workforce. The plant’s ownership and labor management rights will remain with Nissan.

Key Metrics: Utilization Rate Below 50%, Urgent Need to Activate Idle Capacity

The plant once reached an annual peak capacity of 600,000 units, but in 2025, it produced only 273,000 units, resulting in a capacity utilization rate under 50%. Nissan has already consolidated its own models—including the Qashqai, Juke, and Leaf—onto Line 2.

Strategic Rationale: Addressing Weak European Demand and Exploring a New Third-Party Contract Manufacturing Model

Amid global electrification shifts and sluggish consumer demand in Europe, Nissan aims to improve asset efficiency by opening its production lines to third parties, while Chery leverages this opportunity to accelerate its localized presence in the European market.