Introduction
Dubai, United Arab Emirates: British automaker Jaguar Land Rover and Chinese manufacturer Chery Automobile have officially laid the foundation for their new manufacturing facility in the People's Republic of China.
Approval from the National Committee
Recently, the two companies received official notice from the National Development and Reform Commission, granting approval for their joint venture to manufacture Jaguar Land Rover vehicles and new models under a co-branded label in China.
Joint Factory Plans
Jaguar Land Rover and Chery are now focusing their efforts on accelerating the construction of their joint factory in Changshu, near Shanghai, as part of an investment worth 10.9 billion yuan. The project will include:
- Establishing a new facility dedicated to research and development.
- Engine production.
- Manufacturing new models under a co-branded label.
These models will be specifically designed to meet the needs of the Chinese market, including marketing and distribution sectors.
Project Benefits
This joint venture will bring multiple benefits to China, including:
- Stimulating investment.
- Creating new job opportunities.
- Innovating advanced technologies and low-carbon emission solutions.
The project will combine the rich heritage and extensive expertise of Jaguar Land Rover, known for luxury vehicle manufacturing, with Chery’s strong knowledge and deep understanding of Chinese customer requirements.
Commitment of Both Companies
The joint venture underscores the strong commitment of both companies to meet the needs of the world's largest automotive market in the long term.
Statements from Company Leaders
In a joint statement during the press conference held today in Jiangsu Province, Dr. Ralf Speth, CEO of Jaguar Land Rover, and Mr. Yin Tongyao, Chairman and CEO of Chery Automobile Co., Ltd., said:
"We are extremely pleased to achieve this significant milestone. We would not have reached this stage without the awareness and wisdom of the National Development and Reform Commission, to whom we express our sincere gratitude for recognizing the importance of our joint venture and its promising potential in the rapidly growing Chinese market. We are excited to start working closely together to implement our partnership plans, leveraging the extensive capabilities of both companies to produce suitable and advanced models that meet the aspirations of Chinese consumers."
New Company Name
Dr. Ralf Speth and Mr. Yin Tongyao confirmed today that the name of the new joint venture will be "Chery Jaguar Land Rover Automotive Company Ltd."
Production of New Models
In addition to existing models, the joint factory will produce locally branded models designed specifically to meet local customer demands. Both companies are committed to significant investment in product innovation and advanced technologies, relying on the new research and development center, with more details to be revealed later.
Timeline and Future Plans
The companies plan to complete the construction of the Changshu facility in Jiangsu Province by 2014. The joint venture agreement also includes the establishment of a new engine plant to produce highly fuel-efficient engines.
Sales Growth of Jaguar Land Rover
The partnership agreement between Chery and Jaguar Land Rover comes on the heels of Jaguar Land Rover's rapid expansion in China, where its sales grew by 80% in the first ten months ending in October 2012. In 2011, the company's sales increased by over 60% due to strong demand for the Jaguar models "XJ" and "XF," along with robust interest in the fuel-efficient Range Rover Evoque.
Chery: Extensive Industry Experience
Chery, the largest Chinese exporter of automobiles and one of the most productive automotive manufacturers in the country, has over 15 years of experience in the automotive sector.
Conclusion
The partnership with Jaguar Land Rover marks the beginning of a new phase of international expansion and strategic development for Chery Automobile.
