The long awaited news that Jaguar Land Rover are to enter in to a joint venture with Chery Automobile in China has been confirmed.
We’ve been talking about a joint venture in China between Jaguar Land Rover and Chery Automobile for more than a year, despite the (understandable) obfuscation from JLR on the issue. And now it’s been confirmed.
JLR are to enter in to an equal partner joint venture with Chery which will include the manufacture of Jaguar Land Rover cars in China and the creation of joint venture branded vehicles. There ill also be a new R&D facility in China, an engine plant and a new joint venture brand name, although so far JLR hasn’t revealed what it will be.
Now the negotiations seem to be concluded JLR and Chery are happy to make the announcement, although they’re giving no details beyond the outline above.
But we’d expect that the joint venture will first see the creation of a joint-venture Jaguar with new Chinese badges to keep the NDRC happy before JLR will be able to get on with the business of producing cars badged with Jaguar and Land Rover in China.
JLR and Chery have issued a joint statement by Ralph Speth and Yin Tongyao (Chery’s Chief):
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 inChinaand 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.
Which is all good news for JLR (and Chery), even if it does arrive on the same day we report a luxury car price crash in China.