Nissan Sunderland Plant Seeks Chery Deal Amid Brexit Threats

The Nissan automotive plant in Sunderland, England, is facing existential threats as it operates at barely half its capacity. To maintain production volumes, the factory is seeking an unconfirmed deal to build vehicles for the Chinese carmaker Chery.

Brexit-related trade rules create two primary hurdles for the facility. EU rules of origin require battery materials to be European-sourced to avoid tariffs, while the EU Industrial Accelerator Act may exclude UK-made cars from subsidies and public procurement. In response to shifting electric vehicle demand, Nissan has reportedly shelved the development of an electric Qashqai and intends to sell petrol cars beyond 2035, though the company remains committed to an electric future.

Regional stability depends on the plant's survival, as it supports a supply chain including the Turntide factory in Gateshead. The Government of the United Kingdom is considering lowering the zero emission vehicle mandate from 80% to 50% of sales to support automotive competitiveness. Kim McGuinness, the Labour mayor for the north-east, described the factory as fundamental to the regional economy and the country's position in the automotive industry.