Nissan will produce Chery models at its Sunderland plant
- For several years, the Japanese carmaker Nissan has been seeking to increase the utilization rate of its Sunderland plant in the UK – now the carmaker's only European-owned factory – whose production volume has fallen sharply since 2017, primarily due to the drop in sales of its flagship model, the Nissan Qashqai SUV. The plant, which produces the Nissan Juke , Leaf , and Qashqai, is projected to produce only 282,248 units in 2024 and 273,322 in 2025, compared to 510,572 in 2012 and 501,756 in 2013.
 
- Nissan, which is also experiencing serious financial difficulties following the fall in its sales in the United States and especially in China and which had to give its independence back to its compatriot Mitsubishi, was counting on its Chinese partner Dongfeng to saturate its Sunderland factory, but it is ultimately Chery that will help Nissan achieve this objective.
 
- Nissan and Chery have signed a memorandum of understanding (MOU) allowing Nissan to produce Chery passenger vehicles at its Sunderland plant starting in 2027. Under the MOU, the Sunderland plant would remain wholly owned by Nissan and its staff employed by Nissan, but the Japanese automaker would produce Chery models there in addition to its own Juke , Leaf , and Qashqai models. The Chery models produced at the Sunderland site could be Jaecoo or Omoda SUVs, which are in high demand in the UK, as the Jaecoo 7 is currently among the top three best-selling vehicles in the country (see graph below). Chery has a strong incentive to produce these models in Europe to avoid the tariffs applied to vehicles imported from China.
MG (SAIC) will produce cars in Spain from 2028
- The Chinese brand MG (acquired from the British in 2005), which is part of the Chinese group SAIC, has seen its sales in 30 European countries (EU + UK + Switzerland + Norway) increase substantially since 2020. These have risen from 22,000 units in 2020 to 51,000 in 2021, 111,000 in 2022, 229,000 in 2023, 245,000 in 2024 and 306,000 in 2025. The year 2026 marks further progress, with 110,000 cars sold between January and April, representing a potential of 330,000 sales for the whole year.
 
- The MG brand is now in the same situation as other Chinese carmakers , namely finding the best way to avoid the surtaxes applied in Europe to cars imported from China and to meet the possible future requirements of the "local content" being developed at the European Commission.
 
- Rather than producing outside of China or in Europe with another carmaker, MG has chosen to build its own assembly plant in the European Union. This plant will be located in northwestern Spain, in A Coruña (Galicia), and will have an initial production capacity of 120,000 vehicles per year when it begins assembly operations in 2028 , a figure that could be doubled in the medium term. It's worth noting that MG's ambitions seem modest given the brand's current sales volume, which is only expected to increase over the next five years. Therefore, the carmaker could decide within the next year or two to build another assembly plant in Europe, allowing it to completely avoid importing its vehicles from China.
 
- The SAIC group is thus following the policy of its Chinese competitors who are establishing themselves in large numbers on European territory.
 
Stellantis will increase its production capacity in Algeria

The Stellantis group currently has two assembly plants in North Africa, the first of which was inaugurated in Morocco (Kenitra) in June 2019 and the second was inaugurated in Algeria (Tafraoui) in December 2023.

 
a) Kenitra Factory

The Kenitra plant produces the Peugeot 208 for the local and European markets, as well as the Citroën Ami, Fiat Topolino, and Opel Rocks quadricycles. A Fiat B/C segment vehicle called the Grizzly is expected to be added to the site in the second half of 2026.
The
Kenitra plant produced 174,000 Peugeot vehicles in 2025, not including the Citroën Ami, Fiat Topolino, and Opel Rocks quadricycles.

 
b) Tafraoui Factory
• The Tafraoui plant produced 18,000 Fiat vehicles in 2024 and 53,000 in 2025. Stellantis announces a target of 90,000 vehicles produced in 2026 at this site and 135,000 in 2028 , which will require an increase in the plant's production capacity with more local integration.
• The Tafraoui factory produces Fiat models, such as the Doblo (40,000 units produced in 2025) and the 500 (10,000 units produced in 2025) to which has been added since the end of 2025 the Grande Panda (3,000 units produced in 2025).
• The Stellantis plant in Tafraoui is finally replacing the Renault plant in Oran, which still seems to be at a standstill. While the Oran plant was designed for 75,000 vehicles produced per year, the Tafraoui plant will soon be designed for twice that volume, demonstrating Stellantis's genuine belief in the development of the Algerian market, given that the vehicles produced at the Tafraoui plant are primarily sold locally. Producing locally, integrating local suppliers, and training local teams demonstrates a long-term industrial presence, not a temporary assembly operation.
Towards a revival of the A segment at Stellantis
- The Stellantis Group's A-segment cars, the Peugeot 108 and Citroën C1, based on the Toyota Aygo, were discontinued in 2021 without a successor. Another Stellantis A-segment car, this time of Italian origin, the Fiat Panda, is destined for inevitable decline since the launch of the B-segment Grande Panda in 2025. These three Stellantis A-segment cars have never been offered with a fully electric powertrain, and the smaller Panda, renamed Pandina, is not slated to receive a fully electric powertrain. That leaves the Fiat 500, which is offered in both internal combustion and all-electric versions, but its price point makes it practically unsellable.
 
- The Stellantis group has therefore decided to recreate an A-segment from scratch. The carmaker will begin production of a new range of compact and affordable electric cars starting in 2028 at its Italian plant in Pomigliano d'Arco, where the Fiat Pandina is currently produced . These cars could succeed the Peugeot 108, Citroën C1, and Fiat Pandina . This plant has a production capacity of 200,000 vehicles per year.
 
- This Stellantis initiative could, it seems, benefit from the advantages (such as CO2 emission credits, but not only) planned for "E-cars" (European Commission's "E-Car" program): electric vehicles in category M1E not exceeding 4.2 meters in length (therefore segment A and the lower part of segment B). Stellantis' future A-segment cars, sold at a price of €15,000, will be based on the new STLA City platform.
The Stellantis plant in Rennes will produce Dongfeng vehicles
- The Stellantis factory in Rennes ( Ille-et-Vilaine ) was initially a Citroën plant, established to produce the Citroën Ami 6 from 1961. At the time, this factory complemented the brand's existing French industrial infrastructure, which consisted primarily of the Quai de Javel plant in Paris, producing Citroën's high-end models (ID/DS/SM), and the Levallois plant, producing the brand's entry-level models (2CV). Citroën also had a third factory, the Panhard plant at Porte d'Ivry, for assembling its 2CV vans. In 1961, the Ami 6 represented Citroën's mid-range model, positioned between the 2CV and the ID/DS.
 
- After the Ami 6 and then the Ami 8, this factory traditionally produced the brand's mid-range models, such as the GS and GSA, then the BX, Xantia and C5. Today, the Rennes factory, owned by the Stellantis group since 2021, produces the C5 Aircross SUV , but production volumes will not exceed 50,000 units per year in either 2024 or 2025, whereas this factory still produced 103,000 vehicles in 2020, 156,000 in 2019 and even 340,000 in 2005.
 
- The Rennes plant is one of many Stellantis plants suffering from significant overcapacity and is therefore one of four group plants suitable for a Chinese carmaker (as desired by Stellantis management) to produce one or more vehicles for the European market. The other three plants in this situation are those in Villaverde (Spain), Eisenach (Germany), and Cassino (Italy). Dongfeng has agreed to produce one of its Voyah brand vehicles ( Dongfeng 's luxury subsidiary ) at the Stellantis site in Rennes.
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