Jaguar Land Rover and Chery have reached agreement on their proposed joint venture in China

Jaguar Land Rover and Chery Automobile Company have reached agreement on their proposed joint venture in China. The scope of the proposed joint venture would include manufacture of Jaguar Land Rover and joint-venture branded vehicles; establishment of a research and development facility; engine manufacture; and sale of vehicles produced by the joint-venture company, which so far has no official name.

Under Chinese government regulations, foreign car manufacturers can only build manufacturing plants in China if they sign joint venture deals with indigenous brands. They also have to launch Chinese-market-only sub-brands.

Jaguar Land Rover's deal follows several years of negotiations by the UK-based company with potential partners.

In a joint statement, Ralf Speth, JLR chief executive and Yin Tongyao, chairman and chief executive of Chery Automobile, said:“Working together on this proposed joint venture is an exciting prospect for both JLR and Chery. Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that JLR and Chery can jointly realise the potential of these iconic brands in the world's largest car market.

“Our ambition is to leverage the respective strengths of our two businesses - in research and development; technological innovation; manufacturing excellence and local consumer knowledge- to offer Chinese customers the most advanced, highly efficient products featuring the very latest technologies.”

The precise terms and conditions of the commercial agreement have not been disclosed. Most of JLR’s Chinese sales come from Land Rovers. The Chinese-built Jaguars and Land Rovers are expected to only be sold in China. Chery Automobile was founded in 1997 and is China’s largest vehicle exporter.

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21 March 2012

OMG - cheapening of brands knows no bounds. Chery along with Geely sell here in Russia and both make the tinniest nastiest most horrible bad lookalikes using inferior materials and in my own opinion wouldnt get a 1 star NCAP test result between them !!

I am sickened to see the motor industry going the same way as international debt. China is going to own the world before long - hence Germany's intention to rule Europe. It will be just the two of them by 2060 or before! Maybe Russia will be piggy in the middle with any luck. Thankfully I will be long gone!!


21 March 2012

It seems all deals with Chinese are one sided to gain access to their market. If only the West was so organised in allowing access then maybe we would not have the same trade and debt imbalances in the world. Don't suppose it will lead to a cheaper LR to us either.

21 March 2012

[quote petrolheadinrussia]Thankfully I will be long gone!![/quote]You have a young wife PHIR so you will still be around. Who else could peddle your brand of doom & gloom with such aplomb?

21 March 2012

[quote newdevonian]You have a young wife PHIR so you will still be around[/quote] Thank you for the vote of confidence - my dad managed an innings of 94 so maybe I will be able to get close to that - actually it is my ambition to see my daughter through university - be good enough to represent the country of her choice (UK or Russia) in one sport or another - and have secured a decent job with a good company - yep its asking a lot - but we all want the best for our kids! Oh and the wife? maybe I might be needing a viagra dose at 80 !!! lol

21 March 2012

My favourite article i saw speculating about the imminent deal was in the Telegraph that kept going on about JLR getting together with Cheryl !! :-P



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