Chery talks signal fresh Chinese assault on Europe's idle auto plants

Nissan is in early-stage discussions with China's Chery over shared use of its Sunderland manufacturing complex, the Financial Times reported last week, in a move that crystallises a broader pattern of Chinese automakers exploiting underused European capacity to sidestep the EU's tariff regime on imported electric vehicles.

The Japanese group's Sunderland site, which employs around 6,000 workers and has annual capacity of roughly 600,000 vehicles, is currently running at about 50% utilisation. Output briefly fell below 30% during the phase-out of the previous-generation Leaf. The plant produces the Qashqai, Juke and new battery-electric Leaf, with electric Qashqai and Juke variants due from 2027.

Nissan, which is restructuring under chief executive Ivan Espinosa and will shutter seven plants globally while cutting roughly 15% of its workforce, said it was assessing future opportunities but had nothing to announce.

Chery did not comment. Reuters reports parallel talks with Dongfeng are considered unlikely to conclude. Nissan has also warned London that Sunderland's future hinges on the UK being included in the EU's emerging 'Made in Europe' rules.

The approach fits a wider trend. Stellantis is in negotiations with Leapmotor to build an Opel-branded electric SUV in Spain, while Geely and Ford have reportedly discussed giving the Chinese group access to Ford's European factory footprint. Chery itself already runs a Barcelona site through a joint venture with Spain's Ebro, and in January agreed to acquire Nissan's Rosslyn plant in South Africa.

Chery's UK market share reached 6% in March, up from 1% a year earlier, with its Omoda and Jaecoo marques leading the charge. For Chinese manufacturers facing EU tariffs, local assembly offers a route through the bloc's trade defences. For Europe's legacy carmakers, wrestling with weak EV demand, better a Chinese tenant than empty floor space.