JLR and Chery joint venture

JLR Chery logo
21 Mar, 2012 11:21am Jack Rix

Jaguar Land Rover signs a deal with Chinese manufacturer Chery to develop and build cars in China

Jaguar Land Rover and Chery Automobile Company have agreed terms on a joint venture in China. The partnership will include the manufacture of Jaguar, Land Rover and joint venture-branded cars, establishment of a research and development centre, building an engine plant and sales of the vehicles the joint venture produces.

In order to build cars in China, the Chinese government requires foreign manufacturers to team up with a domestic manufacturer. Other joint ventures already in place include BMW with Brilliance, Citroen with Dongfeng Motor Corporation and VW with FAW.

In a joint statement, Dr Ralf Speth, JLR Chief Executive Officer, and Mr Yin Tongyao, Chairman and Chief Executive Officer of Chery, 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."

JLR is keeping the terms of the agreement under wraps for the time being, but it's clear that this is a significant step towards gaining an even bigger foothold in the world's largest, and fastest growing, car market. Even without this venture, JLR sold 42,000 cars in China in 2011 - it's third largest market.


Disqus - noscript

Been dealing directly with manufacturers in China for a long time now.

JLR are undoubtably a terrific company, but they have goofed up here big time.

Of all the Auto manufacturers in China, Chery are by far the worst. Arrogant, conceited, indifferent to markets outside of China & their products have major build quality issues. In addition their warranty, technical and support mechanisms are laughable to say the least.

This will come back to bite JLR big time in the future - mark my words !

A very silly move on the part of a company I very much admire and as a patriotic Brit, am very much proud of.

Stay Frosty.

Surely you mean Tata have been in discusion with Chery? It waould be nice to think these marques were still Britsh, but as is the way of the world, we sold them along with the family silver!!

People should not be surprised if in 10 years or even less, Land Rovers and Jags will start being exported from China & the new jobs announced recently will disappear. The older Discovery's only being made in China is another likelyhood. The British workingclass people should realise that we are being punished for the trade unions and our Empirical past.

Does this mean they"re going to sell Chery tarts?

Jaguar had some issues in the past management wise. Unions is also hugely to blame. In China will be no Union issues… cost is down and the product will be more affordable and easier mass produced. I don't know how bad the quality will be of the JLRs coming out of China (because it will be terrible) would be, but I am not going to spent my hard earned money on Jaguar products any more. JLR's current decision to go to China helped me make my decision easier. You see Jaguars in the US are having a serious reputation problem for some time now. And even though they managed to get some good reviews of their initial product quality that goes down rapidly from current Jag owners mostly due to bad dealership relationship with the public. That's the area Tata had to focus on and he failed. Now he is taking the company to China… It might be a strategic move to increased the income of the brand… who knows… but I know one thing. Its time to take Jaguar out of the list of cars that they mean something. Porsche will give me just as good of an excitement and its a company that it can be trusted. I only hope Aston Martin or McLaren are not following that route. The way Americans feel about China… JLR will almost stop selling the cars here… No one will buy them… When you spent money for a Jag you are buying into something historic and special besides the engineering… China cannot manufacture that… Another bad management decision from the executives in Jaguar… Perhaps its not their fault… and its Tata's fault… After all Indian people are known for bad management style and they are notorious in mismanagement as well… Who knows perhaps that's why jaguar was purchased by Indian…. A BAD management style purchased another badly managed company… You know something… some times I feel guilty I allowed craftsmanship and tradition to play a part in buying both of my Jaguars. If I need to continue feeling like that I need to look for another brand. As I said… Porsche is pretty good and its made in Europe not China… And JLR will also loose their US market soon…. Too bad for that old brand… Perhaps England might have some good craftsmen but definitely produce some stupid executives…

Bad move Jaguar. Bad move.

as the report says to be effective in China and therefore to enter their market with locally produced product needs a Chinese partner. I am never surprised that every JLR comment seems to fall into 2 camps. They are no good and then we get loads of history dragged up harking back to the bad old BL days, or well they are not even British any more...so that must mean those bad old days are over? No as apparently the new Indian owners are a bunch of no hopers. Its a British based company with a largely British workforce, old practices are gone and they have the strength of an extremely large and successful Indian based multi-national in overall control.
I see real signs of progress unlike we seen at any time in the past So lets recognise that and even though there is much still to do there is a realism in the company about addressing quality and reliability