19 November 2012

Jaguar Land Rover and Chery Automobile to invest 10.9bn RMB in China JV project

- Plan to build JV plant in Changshu, near Shanghai 
- New R&D centre and engine production facility 
- To manufacture Jaguar Land Rover and JV branded vehicles 
- JV called Chery Jaguar Land Rover Automotive Company Ltd.

Jiangsu, China & Coventry, UK – 18 November 2012 - Jaguar Land Rover and Chery Automobile Company Ltd, the British and Chinese carmakers, today formally laid the foundation stone for their new manufacturing facility in the People's Republic of China. The JV underlines a firm commitment from both companies to the world's largest car market for the long term future. The equal partnership will be called - Chery Jaguar Land Rover Automotive Company Ltd. 

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 benefits of the joint venture to China include investment, job creation, advanced technology and low carbon solutions. The joint venture will blend together the heritage and experience of luxury premium vehicle manufacturer Jaguar Land Rover with the intricate knowledge and understanding of Chinese customers evident at Chery. 

In a joint statement, 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.” 

In addition to established vehicles, the partnership will also produce models for a domestic brand tailored specifically to local customer demand. Both companies are committed to investing heavily into product innovation and advanced technologies using a new Research and Development Centre. 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. 

Jaguar and Land Rover brand sales in China 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. 

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 partnership with Jaguar Land Rover signals the start of international expansion and strategic development for Chery Automobile. 

Jaguar Land Rover (JLR), a wholly-owned subsidiary of Tata Motors, is the largest manufacturer of premium vehicles in the UK. The company, with a global workforce of around 25,000 employees, sells vehicles in more than 170 countries. The UK, North America and China are its largest markets. Jaguar Land Rover PLC, the holding company for Jaguar and Land Rover, reported profits before tax of £1,507m in the financial year 2011/12, on revenues of £13,512 million. Jaguar Land Rover's head office is in Coventry, in the United Kingdom. 

Source: Jaguar Land Rover