Loss-making Nissan enters the 'game' with Chinese cars Chery, Jaecoo and Omoda in Britain

Nissan, a leading Japanese automaker, is considering manufacturing cars for rival Chinese companies at its main plant in Sunderland, UK, amidst massive financial losses, the company's Chief Operating Officer Ivan Espinosa has confirmed. The company, facing a severe crisis after reporting a net loss of 533 billion yen (2.5 billion pounds) for the financial year ending in March, is reportedly exploring various options to cut costs and return to profitability.

Espinosa has pointed out that entering into such a collaboration with external parties is a timely necessity to secure the future of the approximately 6,000 employees working at the Sunderland plant.

Nissan decided last week to close one of its two production lines in Sunderland due to reduced demand for its own vehicles, and to properly utilize the existing production capacity, more vehicles need to be manufactured. Nissan has held discussions with China's Chery company in this regard, and Chery is making a strong effort to penetrate the British and European markets through its Chery, Jaecoo, and Omoda brands. Espinosa states that given the current situation, Nissan must have the ability to collaborate with external partners, emphasizing that its doors are open to any party willing to utilize the factory's spare capacity.

Demand for Chinese cars in the European market is rapidly increasing, and lower production costs have given Chinese companies a greater opportunity to surpass their rivals. For this reason, not only Nissan but also other European companies like Ford and Stellantis are engaged in discussions with companies such as Geely and Leapmotor to manufacture Chinese vehicles in their underutilized factories. It is further revealed that BYD, the world's largest electric vehicle manufacturer, has also been in contact with various companies regarding the acquisition of underutilized factories across Europe.

Nissan's global operating profit has also fallen by approximately 12 percent compared to last year, and it is predicted that the situation could become even more challenging in the coming year. Import tariffs imposed by the United States and intense competition in the Chinese market have severely impacted Nissan's revenue. Against the backdrop of Nissan's decision to lay off approximately 900 employees across Europe, management expresses confidence that such new business strategies are crucial for the continued operation of important centers like the Sunderland plant.