Nissan Motor (TYO:7201) and Chery Automobile's (HKG: 9973) Chery International UK have entered into a non-binding memorandum of understanding to explore having Nissan build Chery's passenger cars at the Sunderland facility in the UK under a contract manufacturing arrangement.
Under the proposed terms, Nissan would retain full ownership of the plant and employ all staff, with production of Chery vehicles potentially starting on Line One as early as fiscal year 2027, according to a statement on Wednesday.
The agreement follows Nissan's May decision to shift all its own manufacturing to Line Two as part of an effort to boost plant utilization.
While Nissan AMIEO Chairperson Massimiliano Messina called the move a significant step and pledged to pursue a mutually beneficial outcome, the MoU remains non-binding and both sides are continuing discussions without further public details at this time.