Nissan has signed a nonbinding memorandum of understanding with Chery to manufacture Chinese vehicles at its Sunderland facility from next year. The deal aims to secure the long-term future of the UK's largest car plant, which currently operates at roughly 50% capacity utilization.

Massimiliano Messina, Nissan's head of Europe, called the agreement an important step forward for operations. The Japanese automaker plans to consolidate its two production lines at Sunderland and sought external partners after disclosing a major restructuring program involving 20,000 global job cuts.

Chery, which owns Omoda and Jaecoo brands, holds a 6% UK market share and ranks as the fastest-growing Chinese group in the country. The partnership supports government ambitions to reach 1.3 million annual vehicle production by 2035, though industry officials warn this target requires Chinese brand expansion.

Other European automakers including Ford, Stellantis and Volkswagen have explored similar arrangements with Chinese partners like Geely and Xpeng. This reflects broader industry trends as manufacturers seek to maximize idle capacity amid sluggish demand and high production costs.