Chinese cars may be built in Nissan's UK factory after confirming major changes to Sunderland plant

Chinese manufacturers could start building cars in the UK as Nissan looks to make use of production space after announcing major changes to its Sunderland factory.

Nissan's chief executive has confirmed that he would consider allowing the Sunderland factory to be used by other manufacturers to build cars.

CEO Ivan Espinosa said Nissan was "looking at options" after dealing with financial difficulties, prompting a global cost-cutting effort.

It previously announced that it would be cutting 20,000 jobs across the world and closing several factories after it looked to claw back revenue for the business.

Last week, Nissan confirmed that it would be cutting hundreds of jobs across Europe and consolidating the business around the continent.

The brand's Sunderland plant, which employs 6,000 people and is the largest employer in the city, heard that one of its production lines would be closed.

A spokesperson for Nissan told GB News that the Japanese company would "assess future opportunities to secure full plant utilisation".

Reports suggest that the automaker has been in discussions with Chinese brand Chery, which has quickly become a popular name in the UK, despite launching relatively recently.

The Wuhu-based manufacturer has accelerated its rollout across the UK in recent years, with the introduction of Jaecoo, Omoda and the standalone Chery brand.

The three brands have already sold more than 46,000 vehicles in the UK this year, capturing over six per cent of the total new vehicle market.

Commenting on potential talks between Chery and Nissan, Mr Espinosa said: "The plant is operating well, is a viable plant.

"The problem that we have at this location is the volume. So if we can find a smart way of bringing more volume in, we might consider doing something."

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The CEO, who was installed in the position last year, added that there was "nothing specific about any partner to announce today".

However, he clarified that partnering with other automakers was "something that we would likely look into considering".

The commercial arm of Chery has already confirmed that it will establish Liverpool as the base of its European operations.

Chery said it would create high-value jobs across engineering, software development, R&D, and operational roles by using Liverpool's research partners and innovation centres.

Other Chinese brands have looked into the viability of investing in the UK and Europe, as the continent offers a unique selling environment, since they remain frozen out of North America.

As part of the Re:Nissan recovery strategy, the manufacturer stated that it would simplify its structures, reduce complexity and work in a manner that guaranteed sustainability and profitability.

Proposals included the partial closure of its warehouse in Barcelona, Spain, and moving to an importer model for the Nordic market.

Union sources in Spain told ARA that 211 workers at the Zona Franca and El Prat centres would lose their jobs, with Nissan employing around 570 people in Catalonia.