- Nissan aims to boost the utilization rate at its Sunderland plant, which currently stands at just 50%.
- Chery is the fastest-growing Chinese auto group in the UK.
Nissan has recently discussed a partnership with Chery to build cars in the UK, aiming to boost the utilization rate of its Sunderland plant, according to a Financial Times report on Thursday.
The plant is currently operating at about 50% capacity and has separate production lines in different buildings, making it easier to share resources with other automakers, the report said.
The Japanese group has already held talks with numerous other auto companies regarding the use of the Sunderland factory.
Two people familiar with the matter cautioned that the discussions with Chery may not ultimately materialize into a commercial deal. Other automakers, primarily including Ford, Stellantis, and Volkswagen, have also held similar discussions over the past year, according to the report.
Nissan is one of the largest automotive employers in the UK, with about 6,000 full-time workers at its Sunderland manufacturing plant.
With the recent launch of the company's new Leaf electric vehicle, the plant's utilization rate has significantly improved from below 30%.
The new electric Juke model will also be produced at the Sunderland plant, and the new vehicle is expected to officially go on sale in 2027, the Financial Times noted.
However, the long-term future of the plant has been called into serious question as Nissan undertakes a massive global restructuring program. This restructuring involves the permanent closure of some manufacturing plants and the cutting of up to 20,000 jobs worldwide.
Chery is aggressively expanding its international vehicle sales and agreed in January to buy Nissan's car manufacturing plant in South Africa to advance its overseas localized production efforts.
The Chinese auto company owns a manufacturing plant in Barcelona, Spain, which it also purchased from the Japanese group.
Chery South Africa will acquire the assets of the Rosslyn plant in South Africa in mid-2026, which includes land, buildings, and nearby stamping production facilities.
Chery has promised to offer continued employment opportunities to most of Nissan's existing employees, and their compensation packages will remain largely the same as they are currently.
In the UK, Chery is the fastest-growing Chinese auto group, holding a 6% overall market share in March, compared with just 1% a year earlier, the Financial Times noted.
