Nissan in Talks to Make Cars for China's Chery at U.K. Factory

By Joshua Kirby

Nissan Motor is in talks to manufacture cars for China's Chery Automobile at its plant in England, the latest move by the Japanese automaker to realign its business in a tough European market.

Nissan said Wednesday that it signed a nonbinding agreement with Chery's U.K. subsidiary for Nissan to manufacture passenger vehicles at the Sunderland facility in the northeast of England, beginning next year. Nissan would still own the plant and employ its workers, the auto group said.

"We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies," the company said.

Last month, Nissan said it would cut hundreds of European jobs and consolidate operations from two assembly lines to one at the Sunderland site as it aims to make its European businesses leaner and more resilient. The carmaker is striving to arrest a slide in sales amid blows from President Trump's trade tariffs and stiff competition from rivals, notably Chinese automakers like Chery. In 2024, Chery--China's top exporter of cars--stepped in to take over operations at a factory in Barcelona, Spain, that Nissan no longer needed.

Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby

(END) Dow Jones Newswires

June 03, 2026 11:56 ET (15:56 GMT)