Japan-based automotive manufacturer Nissan is set to build vehicles for Chinese carmaker Chery at its Sunderland facility in north-east England, strengthening production utilisation at one of the UK’s largest automotive manufacturing sites. The move highlights growing collaboration between global vehicle manufacturers as companies seek to maximise plant efficiency and scale production capacity.

The Irish News reported that Nissan is expected to manufacture Chery vehicles for the European market under a new arrangement linked to Chery’s Omoda and Jaecoo brands, which have been expanding their presence across the UK and Europe.

The Sunderland plant has long served as a cornerstone of UK automotive manufacturing, producing vehicles for domestic and export markets. Increased production volumes through third-party manufacturing arrangements can improve asset utilisation and operational efficiency while helping manufacturers manage evolving market demand and electrification costs.

The reported agreement reflects broader shifts within automotive manufacturing, where partnerships are increasingly used to accelerate market entry, reduce capital intensity and improve flexibility in production networks. European manufacturers have faced growing competitive pressure from Chinese automotive companies expanding internationally, particularly in electric vehicle segments.

Nissan has continued investing in Sunderland as a strategic manufacturing hub, including battery and electric vehicle production initiatives designed to support the UK’s transition towards lower-emission transport manufacturing. Chery, meanwhile, has expanded its international footprint through new vehicle launches and partnerships aimed at strengthening European distribution.

For manufacturing operations, collaborative production models are becoming more common as automotive companies optimise factory output and adapt supply chains to changing regulatory requirements, electrification targets and shifting consumer demand.

The reported production arrangement could strengthen Sunderland’s long-term manufacturing pipeline while supporting Chery’s expansion ambitions across European markets.

See the full details on Nissan’s reported Sunderland manufacturing plans.