JLR and Chery propose joint venture operation in China
21 March 2012
Jaguar Land Rover (JLR) and Chery Automobile Company have reached agreement on a proposed joint venture (JV) in China, following talks on the establishment of an equal partnership company. The scope of the proposed JV would include the manufacture of JLR- and JV-branded vehicles; the establishment of a research and development facility; engine manufacture, and the sale of vehicles produced by the JV company.
In a joint statement, Dr Ralf Speth, JLR Chief Executive Officer, and Mr Yin Tongyao, Chairman and Chief Executive Officer of Chery Automobile Company, said: "Working together on this proposed joint venture is an exciting prospect for both JLR and Chery. Demand for Jaguar and Land Rover vehicles continues to increase significantly in China and we believe that JLR and Chery can jointly realise the potential of these iconic brands in the world's largest car market.
"Our ambition is to leverage the respective strengths of our two businesses - in research and development; technological innovation; manufacturing excellence and local consumer knowledge - to offer Chinese customers the most advanced, highly efficient products featuring the very latest technologies."
Terms and conditions of the commercial agreement were not disclosed.
Chery Automobile Company was founded in 1997, and is headquartered in Wuhu, Anhui Province, China. It is one of China's largest and most productive automotive manufacturers, as well as being China's largest vehicle exporter to markets in over 60 countries. The product line includes passenger cars, SUVs as well as engines and transmissions. In 2011, Chery recorded sales of 643,000 units, ranking it sixth among Chinese passenger vehicle manufacturers.