- Nissan says it is exploring ways to bring more production volume into its Sunderland factory.
- The company has reportedly held talks with Chinese carmaker Chery over manufacturing vehicles in Britain.
- Nissan posted a £2.5 billion annual loss as competition and tariffs continue to hit the business.
Nissan is considering using its Sunderland factory to build vehicles for other manufacturers as the company looks for ways to keep production levels stable at Britain’s largest car plant.
The move comes as the Japanese carmaker faces mounting financial pressure, weaker vehicle demand and growing competition from Chinese electric vehicle brands rapidly expanding across Europe.
Nissan chief executive Ivan Espinosa reportedly said the company was “looking at options” for the Sunderland site and its 6,000 workers after the company announced steep annual losses and further production cuts.
Speaking after Nissan reported a net loss of around £2.5 billion for the financial year ending March 2026, Espinosa suggested the company could consider external manufacturing partnerships if it helped increase factory output.
“The plant is operating well, is a viable plant. The problem that we have at this location is the volume,” Espinosa reportedly said in a news report.
“If we can find a smart way of bringing more volume in, we might consider doing something,” he added.
Chinese carmakers circle Europe’s underused factories
Industry sources say Nissan has already held discussions with Chinese automotive giant Chery over potentially producing vehicles at Sunderland.
Chery has been expanding aggressively into Britain and Europe through brands including Omoda, Jaecoo and Chery itself, joining a growing list of Chinese manufacturers looking for faster ways to establish a European manufacturing footprint.
Espinosa reportedly confirmed the company was open to collaborations, although he stopped short of announcing any agreement.
“There is nothing specific about any partner to announce,” he reportedly said, while adding that partnerships were something Nissan would “likely look into”.
The talks reflect a broader shift taking place across Europe’s car industry as traditional manufacturers struggle with slowing demand, rising costs and the rapid expansion of cheaper Chinese electric vehicles.
Several major European carmakers have already started exploring similar partnerships.
Ford Motor Company has reportedly discussed plans with Geely over the future of part of its Valencia factory in Spain.
Meanwhile, Stellantis, owner of brands including Fiat, Peugeot and Vauxhall, recently confirmed it would manufacture cars for Chinese electric vehicle company Leapmotor at plants in Madrid and Zaragoza.
At the same time, BYD is reportedly in discussions with several European manufacturers about taking over underused factory capacity across the region.
Stella Li, BYD’s executive vice-president, reportedly said at a conference in London that the company was looking for “any available plant in Europe” as it seeks to expand production.
Sunderland caught in Nissan’s global struggles
While Sunderland remains one of Britain’s most important automotive plants, Nissan’s wider global problems are increasingly affecting operations in the UK.
The company announced last week it would shut one of the factory’s two production lines following weaker demand for models including the Qashqai, Juke and Leaf.
Nissan also confirmed around 900 job cuts across Europe, including a smaller number of office-based roles in Britain.
The company’s financial results highlighted the scale of the pressure facing the business. Operating profits fell nearly 12 per cent to around £270 million, although Nissan expects some recovery next year.
Espinosa, who became chief executive last year, has been tasked with cutting costs and rebuilding profitability after several difficult years for the company.
Nissan has also faced additional pressure from tariffs introduced by US President Donald Trump on imported vehicles, alongside intensifying competition inside China itself.
Despite the losses, Espinosa reportedly said the company’s progress had remained “steady” given what he described as an uncertain global operating environment.
For Sunderland, the discussions may signal how Europe’s car industry is entering a new phase — one where traditional manufacturers increasingly share factories, production lines and partnerships with the very Chinese rivals now reshaping the global electric vehicle market.
