Nissan announced on Wednesday that it has signed a non-binding memorandum of understanding (MOU) with Chery International UK covering future vehicle production cooperation at its Sunderland plant in the United Kingdom. Under the preliminary agreement, Chery passenger vehicles are expected to enter production at Nissan’s Sunderland plant beginning in fiscal year 2027. Manufacturing will utilize Production Line 1, which currently has surplus capacity. According to the terms of the non-binding MOU, ownership of the Sunderland plant will remain entirely with Nissan, while all employees at the facility will continue to be hired and managed by Nissan. Nissan’s Sunderland plant in the UK As the largest automotive manufacturing site in the UK, the Sunderland plant has long served as the core production hub for Nissan’s European operations, with annual production capacity of up to 600,000 vehicles. However, weaker demand across European markets has reduced utilization levels. Output at the plant totaled only 273,000 vehicles in 2025, leaving capacity utilization below 50%. To improve efficiency and make use of idle production assets, Nissan disclosed in May that it would consolidate production of its own models onto Production Line 2 while opening Production Line 1 to contract manufacturing opportunities. The arrangement aligns closely with Chery’s broader European expansion strategy. Chery Omoda E5 In April, Chery executives indicated that the company was accelerating its localization efforts in Europe, preferring partnerships with established local automakers and the use of existing manufacturing facilities rather than constructing entirely new plants from scratch. Chery’s European expansion has accelerated significantly over the past two years. Since entering the market in 2023, the company has expanded operations across 18 European countries and surpassed 100,000 customers in the region. At the same time, Chery has established its European Operations Center in Barcelona, Spain, while working with local partners to build manufacturing and distribution networks across the continent. Chery’s Lepas L4 (a brand specific for Europe) The United Kingdom has emerged as one of Chery’s fastest-growing European markets. Data show that Chery, Omoda, and Jaecoo registered a combined 6,142 vehicles in the UK in May, up 87.2% year-on-year, making Chery the second-largest Chinese automotive group in the British market. Meanwhile, Chery has also begun expanding its technology licensing business. India’s largest EV maker, Tata Motors, plans to adopt Chery’s vehicle platform technology for development of its premium Avinya electric vehicle program.