LONDON, June 3 (Xinhua) -- Japanese automaker Nissan and Chinese automaker Chery have signed a preliminary agreement to explore the production of Chery vehicles at Nissan's Sunderland plant in northeast England, as the Japanese group seeks to make better use of spare capacity at Britain's largest car factory.
Under the non-binding memorandum of understanding (MoU) announced on Wednesday, the factory could begin manufacturing Chery passenger vehicles at the Sunderland plant as early as 2027.
The facility is Britain's biggest single car plant and employs around 6,000 workers. Nissan said in May that it would concentrate its own vehicle production on one of the plant's two assembly lines while exploring opportunities to make more effective use of the other.
Massimiliano Messina, chairperson of Nissan's Africa, Middle East, India, Europe and Oceania region, described the MoU as "an important step forward" for the company's operations.
"We are looking forward to working with Chery UK in the coming months to finalize a position that is optimal for both companies," he said.
The Sunderland plant will remain fully owned by Nissan, while the workers producing Chery vehicles will continue to be employed by the Japanese automaker, according to the MOU.
David Bailey, professor of business economics at Birmingham Business School, University of Birmingham, told Xinhua that the proposed deal could mark an important turning point for Chinese automakers in Britain.
"It's a historic deal because it could make Chery the first major Chinese carmaker to manufacture passenger cars in the UK at scale," Bailey said.
He said the significance of the proposed arrangement extends beyond Chery's expansion into the British market. By making use of spare capacity at Sunderland, the cooperation will also help support the longer-term future of a major British automotive manufacturing base.
"The real story isn't Nissan helping Chery. It's Chery helping keep a major Nissan factory busy," he said.
Bailey said the proposed deal reflects the changing position of Chinese automakers in the global car industry. Rather than simply exporting vehicles to Britain, Chinese brands increasingly become part of the country's domestic manufacturing base.
"If Chinese brands can build cars in Sunderland, they move from being foreign challengers to domestic manufacturers," he said. "China isn't just competing with Western carmakers anymore, it is becoming part of the industrial base." ■
