News : JLR and Chery waiting on a new venture

Carole Nash Classic Insurance Specialists

The Economic Times

Jaguar Land Rover and Chery Automobile Co are seeking regulatory approval for a 17.5 billion yuan ($2.78 billion) car venture in eastern China, two people with direct knowledge of the deal told reporters on Monday. The venture, to be located close to Shanghai in Changshu city, will make Land Rover SUVs initially, followed by Jaguars in the second phase, one person told reporters.

‘The plan is still subject to the approval of the National Development and Reform Commission at this state. The size of the investment could be adjusted accordingly,’ another person said.

The venture is also subject to approval from other government bodies. Both sources declined to be named because of the sensitive nature of the proceedings. JLR, controlled by India’s Tata Motors Ltd had previously explored joint venture deals with other Chinese partners, including Great Wall Motor Co Ltd.

A Tata Motor spokesman declined to comment on the Chery tie. Chery executives could not immediately be reached.

[Source: The Economic Times]

Keith Adams

Keith Adams

Editor and creator AROnline at AROnline
Created www.austin-rover.co.uk in 2001 and built it up to become the world's foremost reference source for all things BMC, Leyland and Rover Group, before renaming it AROnline in 2007.

Is the Editor of the Parkers website and price guide, formerly editor of Classic Car Weekly, and launch editor/creator of Modern Classics magazine. Has contributed to various motoring titles including Octane, Practical Classics, Evo, Honest John, CAR magazine, Autocar, Pistonheads, Diesel Car, Practical Performance Car, Performance French Car, Car Mechanics, Jaguar World Monthly, MG Enthusiast, Modern MINI, Practical Classics, Fifth Gear Website, Radio 4, and the the Motoring Independent...

Likes 'conditionally challenged' motors and taking them on unfeasible adventures all across Europe.
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4 Comments

  1. Good for JLR – a sound business decision that will help them become a real player in the strong Chinese market

  2. I hope it goes well I really do but Chery have a nasty habit of ripping off everything around them. How many years do we believe it will be before Chery amazingly come up with something stranegly reminiscent of a Jaguar or Land Rover? It’s a shame China isn’t a little more open in it’s trade dealings because currently if you want to build there, you have to partner up with a Chinese firm who then have access to all of your technology and blueprints.

  3. Brilliant news! I hope JLR are strong in this emerging market and that it secures, not only jobs, but also development cash for excellent new cars.

    And in answer to James (above) ‘keep your friends close, but keep warm in winter’… I’m sure someone said something similar to this in the past.

  4. Chery will need attention to their quality to build Landies. Even in the Philippines, where they are more accustomed to Jeepneys (which relate to Japanese trucks as kit cars do to donor vehicles), they have noticed how fast Cherys deteriorate – there are rumours they will have to pull out of the market. Having said all that, I hope this works out, for JLR’s sake.

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