Jaguar Land Rover will launch a new sub-brand in China as part of its proposed joint venture in the fast-expanding market. JLR is believed to be in talks with Chery about a tie-up that will allow JLR to manufacturer vehicles in China, it was revealed at the Geneva motor show.
Regulatory requirements only allow non-domestic car makers to build cars in China once they have entered into a joint venture with a Chinese brand and established a new sub-brand selling entirely separate vehicles.
“We’re in discussions and there are a lot of opportunities,” said JLR CEO Ralf Speth. “We are treading very carefully as we have to meet a lot of requirements. It’s harder for western brands to get into China now as a we are late to the party.
“You need a joint venture and a sub brand before you can make and sell your own cars there. The sub-brand needs new product with new names, and sales channels.”
Speth said the creation of the sub brand would be taken very seriously. “You have to make it profitable. It has to be a serious business. You have to invest seriously if you want serious product.”
Speth wouldn’t elaborate on exactly what make-up the sub-brand would take. “You can do anything: lorries, trucks, buses, whatever. As long as it’s new.”
JLR has several names available to it should it wish to resurrect something from its past, including the Daimler name plate.
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Re: Geneva 2012: Chinese sub-brand for JLR
That's an odd assumption to make. In fact the Chinese domestic brands are struggling against the perceived desirability of the established western brands in Chinese sales. Those who can afford it would rather have a VW than a Chery, etc
Re: Geneva 2012: Chinese sub-brand for JLR
The only sub-brand that the Chinese will be interested in will be one that has links to their own country.
Re: Geneva 2012: Chinese sub-brand for JLR
How about Tata buys Saab and that becomes the sub-brand....? or resurrect Rover...