Nissan signs pact to assess production of Chery's UK vehicles at Sunderland facility (June 3)

(Corrects headline and text in June 3 story to say Nissan has signed a pact with Chery to assess whether it wants to manufacture vehicles, not a deal to manufacture them; corrects paragraph 4 to specify the pact includes possibility of aiming to start production)

June 3 (Reuters) - Japan's Nissan said on Wednesday it has signed a pact with Chinese automobile manufacturer Chery to study manufacturing Chery's UK passenger vehicles at its Sunderland facility in Britain. 

Nissan would continue to fully own the Sunderland facility, the company's statement said.

The Japanese automaker employs around 6,000 workers at the Sunderland plant, which has been a cornerstone of its British presence since the 1980s and has produced models like the Qashqai and Juke crossover SUVs.

The non-binding pact includes "the possibility" that Nissan would aim to begin manufacturing Chery International UK passenger vehicles on the plant's production "Line One" in the financial year 2027.

The Financial Times had reported in April that Nissan had held talks with Chery to build cars at its Sunderland plant.

The partnership comes amid efforts by Chinese automakers to establish manufacturing operations in Europe to avoid import duties and improve supply chains.

Chery was looking to expand car production in Europe through partnerships with other automakers to use their existing factories, top executives at the Chinese carmaker said at an April event in Paris.

Chery operates in Europe through its eponymous brand and subsidiaries Jaecoo, Jetour and Omoda. It made up 2% of total registrations in Europe between January and April.

Meanwhile, Nissan aims to consolidate its manufacturing operations onto production "Line Two" as it explores ways to secure better plant utilisation, the statement said.

Under CEO Ivan Espinosa, Nissan has been cutting costs aggressively as it looks to turn around its business after years of turmoil. Last year, it announced plans to close seven plants globally and cut about 15% of its workforce.

(Reporting by Preetika Parashuraman in Bengaluru; Editing by Diti Pujara)