New Jaguar Land Rover China Manufacturing Expansion to Include R&D Centre
The two companies recently received formal approval from the Chinese Government for their joint venture and now have a licence to manufacture Jaguar Land Rover vehicles and new models for a partnership brand in China.
Jaguar Land Rover and Chery will now accelerate plans to build a joint venture manufacturing plant in Changshu, near Shanghai, as part of a 10.9bn RMB investment that will also include a new research and development centre and engine production facility. The project includes the creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including the marketing and distribution.
The joint venture will blend together the brand experience of Jaguar Land Rover with the knowledge and understanding of Chinese customers via Chery.
In a joint statement at a press conference in Jiangsu, Dr. Ralf Speth, Jaguar Land Rover Chief Executive Officer, and Mr Yin Tongyao, Chairman and Chief Executive Officer of Chery Automobile Company Ltd, said: “We are delighted to have reached this milestone, achieved thanks to the understanding and foresight of the Chinese authorities and we want to thank them for recognising the potential of our joint venture in the fast-growing Chinese market.
“Together, we will now begin working in close collaboration on our partnership plans to harness the capabilities of our respective companies, to produce relevant, advanced models for Chinese consumers.”
The name of the new joint venture company was also confirmed today by Dr. Ralf Speth and Mr Yin Tongyao. The equal partnership will be called – Chery Jaguar Land Rover Automotive Company Ltd.
In addition to established vehicles, the partnership will also produce models for a domestic brand tailored specifically to local customer demand.
The two companies plan to complete the Changshu facility in Jiangsu province during 2014. Construction of a new engine plant for production of fuel efficient engines is also part of the JV partnership agreement.
Chery’s partnership with Jaguar Land Rover follows rapid expansion of the Jaguar and Land Rover brands in China, where sales rose 80 per cent in the first 10 months to October 2012. In the 2011 calendar year, Jaguar Land Rover saw sales increase more than 60 per cent, driven mainly by the Jaguar XJ and XF models, and strong demand for the Range Rover Evoque.
Chery, the largest Chinese car exporter and one of the country’s main automotive manufacturers, has 15 years’ experience in the automobile industry.
The partnership with Jaguar Land Rover signals the start of international expansion and strategic development for Chery Automobile.
Source: Jaguar Land Rover