As we are only too well aware, car makers are having the most torrid of times. Massive drops in car sales in the UK (at least in new cars – UK used car sales are actually rising) means car makers’ cashflows are horrific. But it looks like there’s a white knight on the horizon for Tata’s Jaguar / Land Rover.
Apparently, there’s a delegation of Chinese Business leaders, headed by China’s Minister of Commerce Chen Demming, headed to Europe on a buying spree, and Jaguar Land Rover are to get sales of 6,000 Land Rovers and 3,000 Jaguars, at a total cost of around £430 Million.
Now I have no doubt that the Chinese will get an even better deal on Jaguars and Land Rovers than the shrewd buyer here can ( discounts of 25% on most Land Rover models are achievable) but this is a huge boost for Tata in troubled times.
In total, the Chinese delegation is expected to spend around £12 billion across Europe on their visit, which will give the Chinese access to machinery, cars and food products in a gesture designed to placate fears of protectionism by the Chinese. Europe is a huge market for Chinese goods, and with Europe in financial chaos it is crucial that the Chinese are seen as two-way trade partners if they are to maintain the access they have to European markets for their goods.
And we’d better get used to this. China is rapidly becoming a huge force in the world economy, and the next decade will potentially see them becoming the most economically powerful nation on earth.
Time to brush up our Cantonese?!