Nissan Motor Company announced that it has signed a non-binding memorandum of understanding (MoU) with Chinese automaker Chery International to study opportunities for the assembly of Chery passenger vehicles under contract at its plant in Sunderland, UK.

The Japanese automaker confirmed that it is discussing assembly of passenger vehicles supplied in kit form by Chery International UK on Line One at its Sunderland plant from the 2027 fiscal year (FY27).

Nissan had previously announced that it planned to consolidate its manufacturing operations at the Sunderland plant onto production Line Two, freeing up Line One to allow it to “investigate opportunities to secure better plant utilisation.”

Nissan confirmed that under the terms of the MoU, the Sunderland facility would remain fully owned by Nissan, with the team involved in the possible production of Chery vehicles at the plant being employed directly by Nissan.

Massimiliano Messina, chairperson for Nissan Africa, the Middle East, India, Europe and Oceania (AMIEO), said in a statement: “This is an important step forward for our operations. We are looking forward to working with Chery International UK in the coming months to finalise a position that is optimal for both companies.”

Earlier this year, Nissan agreed to sell its vehicle manufacturing operations in Rosslyn, South Africa, to Chery SA, as it looked to increase global capacity utilisation and improve manufacturing efficiency.