Chinese car manufacturer Chery could soon be building its cars at Nissan’s Sunderland plant following a new deal.
The manufacturer, which produces Omoda and Jaecoo brands, has signed a non-binding memorandum of understanding with Nissan to build its cars at the Sunderland facility.
The site would remain owned by Nissan under the agreement and the team operating it would also be employed by the Japanese car maker, but Chery would build its passenger cars at the plant’s spare production line.
If the deal goes through, Chery cars could be rolling off the Sunderland production line in the 2027 financial year.
An announcement in May by Nissan stated that the brand would be consolidating its manufacturing operations onto a single production line to “assess future opportunities to secure full plant utilisation”.
The change would result in some 900 job losses across Europe, though how the Sunderland plant – which employs around 6,000 people – would be affected wasn’t confirmed at the time.
Massimiliano Messina, chairperson Nissan, said: “This is an important step forward for our operations.
“We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.”
Nissan has confirmed that the current agreement is non-binding and that “discussions are ongoing between the two companies, with no further details to be made public at this stage”.
Last month the Japanese automaker Nissan said it reduced losses for the fiscal year through March, but remained in the red, battered by U.S. tariffs, inflation and intensifying competition.
Nissan Motor Corp., based in the port city of Yokohama, reported a 533 billion yen ($3.4 billion) loss, smaller than the 670.9 billion yen in red ink racked up the previous fiscal year.
Nissan’s annual sales fell 5 per cent to 12 trillion yen ($76 billion.)
Chief Executive Ivan Espinosa said Nissan was making steady progress and seeing “clear signs” of a turnaround.
“We have moved beyond recovery and are entering a phase of growth,” he said. “We will build on this momentum through disciplined cost management and faster product execution, driving sales and profitability.”
On a quarterly basis, Nissan had a net loss of 282.9 billion yen ($1.8 billion) in the January-March period, compared to the 676 billion yen loss the same period a year ago.
Quarterly sales declined nearly 2 per cent to 3.43 trillion yen ($22 billion).