Nissan Motor Corporation has entered into a non-binding Memorandum of Understanding (MoU) with Chery International UK, opening discussions on potential contract manufacturing at its Sunderland facility.
The agreement marks an exploratory step towards deeper industrial collaboration in the United Kingdom.
This development mirrors moves already seen in South Africa, where Chery has acquired Nissan’s Rosslyn manufacturing assets.
The MoU outlines that Nissan would retain full ownership of the Sunderland facility, with employees remaining under Nissan contracts. The agreement includes the possibility of Chery passenger vehicles being produced on Sunderland’s Line One from the 2027 financial year. Nissan recently announced plans to consolidate operations onto Line Two to improve plant utilisation.
Massimiliano Messina, Chairperson Nissan AMIEO, emphasised the importance of the partnership: “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.”
While discussions remain ongoing, the arrangement highlights Nissan’s strategy to adapt its European operations. The South African connection is equally notable. In Rosslyn, Chery SA will acquire Nissan’s land, buildings and stamping plant by mid-2026, subject to regulatory approval.
Jordi Vila, Nissan Africa President, explains: “Through this agreement we’re able to secure employment for the majority of our workforce thereby also preserving opportunities for our supplier network. This move also ensures that the Rosslyn site will continue contributing to the South African automotive sector.”
Nissan will continue offering vehicles and services in South Africa, with new launches such as the Nissan Tekton and Patrol planned for 2026.
The trend extends beyond the UK and SA. Chery acquired a former Nissan factory in Barcelona in 2023, aiming to produce 200 000 vehicles annually. According to Japan Times, Stellantis has also opened its Spanish and French plants to Chinese partners, while Ford and Volkswagen are considering similar arrangements.
This evolving landscape underscores how global manufacturers are rethinking plant utilisation and partnerships, with Nissan’s UK and South African strategies reflecting broader industry shifts.
Photo: Nissan
Staff Writer
Reporting from the front lines of the automotive industry, delivering expert analysis and the technical updates that drive the South African motor sector forward.
