Chinese cars to be built in Sunderland: Boost for 6,000 UK workers as Nissan nears deal
Chinese cars could roll off UK production lines for the first time from next year in a deal that may safeguard thousands of jobs at Britain’s biggest auto factory.
Japan’s Nissan said it was exploring a tie-up in which it will make vehicles on behalf of fast-growing Chinese rival Chery in Sunderland.
A deal would be a milestone for China’s rapidly increasing presence in the UK car market.
Chery and its brands such as Jaecoo and Omoda, as well as Chinese rival BYD, are an increasingly common sight on Britain’s roads. Sales of Chinese cars formed 5.5 per cent of the market last year, up from 0.7 per cent in 2024.
Nissan opened Sunderland in 1986. It employs 6,000 people there and produced more than 273,000 vehicles last year.
But it has been running below capacity and last month said it was combining its two production lines into one, kicking off a search for a partner to use up the slack.
Sunderland deal: Chery’s sub-brands include Omoda and Jaecoo which makes the top-selling Jaecoo 7, pictured, – known as the ‘Temu Ramge Rover’
Yesterday, Nissan said it had signed a non-binding memorandum of understanding which could see it manufacture Chery vehicles from 2027.
Professor David Bailey, an industry expert at Birmingham Business School, said: ‘Twenty years ago Chinese brands were trying to break into Europe.
Now they’re going to build cars in Britain’s biggest car factory. It’s historic because it could make Chery the first major Chinese carmaker to manufacture passenger cars in the UK at scale.
‘This shows how quickly the balance of power in the industry has shifted from Detroit, Tokyo and Europe towards China.’
Details of which Chery brands would be made have not been revealed, raising the prospect that it could manufacture the Jaecoo 7 – known as the ‘Temu Range Rover’ – one of Britain’s best-selling cars this year.
Talks are ongoing, as the firms seek to finalise financial terms and operational details.
Nissan executive Massimiliano Messina said: ‘We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.’ Chery said the non-binding agreement was part of its evaluation of opportunities in the UK.
A Chinese firm entering a British industry is likely to be viewed with concern in some quarters amid strained political tensions between Beijing and the West and concerns over spying.
Professor Bailey said: ‘For British workers, the nationality of the badge maybe matters less than whether the factory stays open and jobs stay secure.
‘The symbolism is pretty extraordinary: Nissan once represented the globalisation of Japanese car making in Britain.
‘Now Sunderland could become a launchpad for China’s automotive expansion.’
Unite trade union official Steve Bush, said: ‘This is very good news for Nissan’s Sunderland workers. Chinese vehicles are increasingly visible on British roads so it makes sense to build them here.’
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