Another Step for the Chinese in Europe: Chery to Produce at Nissan's Sunderland Plant

Continuing developments on the China-Europe axis feature the United Kingdom this time, which is now part of the continent only in a geographical sense. However, trade relations with the Union continue to be favored, and this is why Chinese companies look across the channel as an appealing alternative.

This is what Chery has done, signing a non-binding memorandum of understanding with Nissan for the production of Chinese cars at the Sunderland plant.

However, this is not an acquisition, but rather a traditional production contract. The factory will remain (or rather would remain) owned by Nissan, as all employment contracts will stay with the Japanese brand, which will limit itself to producing on behalf of third parties.

The Sunderland plant is the most important in the UK, and last year it produced only 273,000 cars, against a capacity of around 600,000 vehicles, meaning it was not even utilized for 50%. As a result, Nissan has decided to focus all its activities on Line 2, leaving Line 1 available for potential external agreements, just like the one currently being established with Chery.

If the name Chery is not familiar to you, perhaps the brands it sells in Italy are more recognizable, namely Omoda, Jaecoo, and more recently Lepas. In the UK, the company has grown rapidly, also with the direct Chery brand, reaching market shares of up to 7%, with the Jaecoo 7, produced in China, becoming the best-selling model in the UK last March.