Nissan eyes Chery deal to sublease Sunderland plant
Reports are mounting that carmakers are lining up Chinese partners as subtenants for underutilised European plants. Bloomberg recently reported that Stellantis is actively exploring plant collaborations with Dongfeng, while talks with Xpeng and Xiaomi are also said to be underway. Now, the Financial Times reports that Nissan is seeking a partner for its Sunderland plant and has entered talks with Chery, citing four sources familiar with the matter.
According to these sources, Nissan has also held—or is still holding—discussions with other companies about utilising the Sunderland plant. Dongfeng is specifically mentioned in this context, although two individuals close to the Japanese group told Reuters that a deal with Dongfeng is unlikely. The talks have not been officially confirmed. Nissan declined to comment when approached by the news agency, while Chery ‘did not immediately respond to a request for comment,’ according to the Financial Times.
One thing is clear: Nissan’s Sunderland plant features separate production lines across various buildings, which facilitates shared use of the site by multiple parties. Currently, Nissan employs around 6,000 staff at the location, making it one of the largest employers in the UK automotive industry. The plant produces the Qashqai, the Juke, and the third generation of the battery-electric Leaf. From 2027, an electric version of the Juke and, shortly afterwards, a battery-electric Qashqai are also set to roll off the production line.
However, capacity utilisation at the plant is currently low, reportedly standing at around 50 per cent. When the old Leaf was phased out and the new model was not yet in production, utilisation temporarily dropped below 30 per cent, according to the report. While Nissan is proactively seeking to improve the plant’s economic viability through partnerships with Chinese firms, the company is simultaneously pressuring the UK government to maintain stable framework conditions. Last month, Nissan warned the British government of drastic consequences for the Sunderland plant should the UK be excluded from the ‘Made in EU’ rules.
Chery’s emergence as a potential partner comes as little surprise: earlier this year, the company agreed to take over a Nissan plant in South Africa and recently moved into a former Nissan facility in Barcelona. With backing from Nissan, Chery could now push ahead with local production in the UK. According to Reuters, Chery—alongside its brands Omoda and Jaecoo—is currently the fastest-growing Chinese carmaker in the UK, with its market share reaching six per cent in March, based on data from Society of Motor Manufacturers and Traders.
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