SOLIHULL-based Jaguar Land Rover and Chery Automobile Company Ltd have formally laid the foundation stone for a new manufacturing facility in the People’s Republic of China.
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.
JLR and Chery will now accelerate plans to build a manufacturing plant in Changshu, near Shanghai, as part of a 10.9bn Renminbi investment that will also include a new research and development centre and engine production facility.
In the first 10 months to October 2012 JLR sales in China rose 80 per cent while in the 2011 calendar year, sales increased more than 60 per cent, driven mainly by the Jaguar XJ and XF models, and strong demand for the fuel-efficient Range Rover Evoque.
The joint venture project includes the creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including the marketing and distribution.
Dr Ralf Speth, CEO of Jaguar Land Rover and Yin Tongyao, chairman and CEO of Chery Automobile Company Ltd, said: “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. 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 customer demand.