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Nissan Explores Chery Partnership to Save Sunderland Plant

Financial Times Companies •
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Nissan has held discussions with China's Chery about utilizing the Japanese automaker's Sunderland plant, which is operating at approximately 50% capacity, according to four people familiar with the talks. The proposed partnership aims to boost utilization rates at the UK facility, which has separate production lines that could accommodate multiple manufacturers. Nissan is one of the UK's largest automotive employers with about 6,000 workers in Sunderland.

While the talks with Chery are ongoing, Nissan has also engaged with numerous other companies about using the facility, and a deal with the Chinese state-owned carmaker may not materialize, two sources cautioned. This collaboration effort reflects a broader trend among legacy automakers seeking partnerships to protect European and UK manufacturing amid sluggish demand and high production costs. Ford, Stellantis, and Volkswagen have similarly explored partnerships with Chinese manufacturers like Geely and BYD to utilize idle capacity at their European plants.

The Sunderland plant's future has been uncertain following Nissan's massive restructuring program, which includes 20,000 global job cuts and potential factory shutdowns. The company has warned that the plant could close if the EU implements "Made in Europe" manufacturing targets that exclude Britain. Despite these challenges, Nissan recently launched its new Leaf electric vehicle at the facility and plans to produce the new electric Juke there starting in 2027, signaling continued investment in the site's capabilities.