Jaguar Land Rover and Chery Automobile Company Ltd. entered in a joint venture with the goal of producing fuel-efficient engines and dedicated Chinese vehicles.
The British and Chinese carmakers formally laid the foundation stone for their new manufacturing facility in the People’s Republic of China on Nov 17.
Both companies announced in a release they recently received formal approval from the Chinese Government for their joint venture and now have a license to manufacture Jaguar Land Rover vehicles and new models for a partnership brand in China.
Jaguar Land Rover and Chery said they will now accelerate plans to build a joint venture manufacturing plant in Changshu, near Shanghai, as part of a 10.9-billion RMB investment that will also include a new research and development centre and engine production facility.
Both companies said 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 benefits of the joint venture to China include investment, job creation, advanced technology and low carbon solutions.
The joint venture hopes to blend together the heritage and experience of luxury premium vehicle manufacturer Jaguar Land Rover with Chery’s intricate knowledge and understanding of Chinese customers.
In a joint statement, at Saturday’s 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. Expect the mouthful to quickly be labeled as CJLR.
In addition to established vehicles, the partnership will also produce models for a domestic brand tailored specifically to local customer demand.
Both companies declared being committed to investing heavily into product innovation and advanced technologies using a new Research and Development Centre, more details of which will be released at a later date.
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 a rapid expansion of the Jaguar and Land Rover brands in China, where sales rose by 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 fuel-efficient Range Rover Evoque.
Chery, the largest Chinese car exporter and one of the country’s most productive automotive manufacturers, has 15 years’ experience in the automobile industry.
The release send by both parties stated that the partnership with Jaguar Land Rover signals the start of international expansion and strategic development for Chery Automobile.