Chinese car manufacturer Chery is taking an important step to strengthen its presence in the European market. Negotiations have begun with the Japanese automotive giant Nissan to produce vehicles at its factory in Sunderland, England.

It is stated that a non-binding preliminary agreement was signed between the parties and the process continues. If this cooperation is implemented, Chery branded vehicles will begin to be produced in the UK’s largest car factory as of fiscal 2027.

New era at Sunderland factory

The Sunderland facility, which employs approximately 6 thousand people, is at the center of Nissan’s electric vehicle and battery-focused EV36Zero project. The ownership of the factory will continue to remain with Nissan and the workers working on the production line will continue to work within Nissan.

Nissan has been going through a difficult process recently due to its global restructuring process. This subsidiary can play a critical role in using the factory’s existing production capacity more efficiently.

Production of Nissan Qashqai, Juke and fully electric Leaf models continues at the Sunderland factory. It is not yet clear whether electric and rechargeable hybrid models, which have an important place in Chery’s European strategy, will be produced in this facility.

Chinese manufacturer influence in Europe

The influence of Chinese car manufacturers on the European market is becoming increasingly obvious with local production breakthroughs. Previously, the MG brand had announced to the public that it would choose Spain for its first European production facility.

The fact that the negotiations between Chery and Nissan resulted in a definitive agreement means that a new one will be added to the production networks of Chinese brands in Europe. This development shows that global balances in the automotive industry continue to change.

How do you think Chery’s production at the Nissan factory will affect the brand’s competitiveness in the European market?