Jaguar Land Rover to build factory in China

JLR China Factory cornerstone
19 Nov, 2012 9:51am Tom Phillips

JLR and Chery will invest £1.1billion in a Chinese factory to open in 2014

Jaguar Land Rover and Chery Automobile have received approval from the Chinese government to invest 10.9billion RMB (£1.1billion) in building a factory in China.

The two firms have formed a joint venture company, called Chery Jaguar Land Rover Automotive Company Ltd, and now have a licence to manufacture JLR vehicles and new models at a new factory, which is to be constructed in Changshu, near Shanghai.

As well as building cars, the factory will include a research and development centre and engine production facility.

Talking at the announcement of the deal in Jiangsu, China, Dr Ralf Speth, Jaguar Land Rover Chief Executive Officer, and Mr Yin Tongyao, Chairman and Chief Executive Officer of Chery Automobile said in a joint statement: "We are delighted to have reached this milestone, achieved thanks to the understanding and foresight of the Chinese authorities and we want to thank them for recognising the potential of our joint venture in the fast-growing Chinese market.

"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 firms announced that as well as building current JLR cars, tipped to begin with the Land Rover Freelander and Range Rover Evoque, the partnership will also produce models for a domestic brand, tailored specifically to local customer demand.

The new factory is scheduled to be completed in 2014, as JLR bids to consolidate its rapid expansion in the Chinese market. The firm’s sales rose 80 per cent during the first 10 months of the year to October 2012.

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Well I hope the head office in U.K where went for tour 10years ago will be still there I hope

Well it will only add to sales of other luxury brands, China is not yet recognised as a luxury brand manufacturer in cars yet, who's going to spend 50k on a car made in China!!

How this deal helps Britain and the British worker, i fail to understand.

Does this mean Evoque's will be in abudance and therefore cheaper as they import them into UK. Good idea to wait if you are thinking of buying one here, especially with the current no discount policy. Also if car arrive from China at a cheaper price bang goes second hand values.

China in particular has become a key market, representing 108,000 out of
705,000 cars delivered in the first three quarters of 2009.--quoted from wikipedia page for AUDI. AUDI, M-B and BMW are well ahead of this game. Dont tell me JLR is different, maybe the car is (I own two Jags), but the company is just another car manufacture, which needs to deliver profit to its shareholder.

I had a Nissan Chery once - it was crap!

Seems like a fantastic way to drag down the brand value of JLR. Is Chery about to completely re-invent itself? It would certainly need to, to lift its cars out of the Deadly, Dull and Boring category. Do JLR honestly believe they'll be able to rule the roost making cars jointly in China? What an interesting exercise, to make profits from el cheapo cars, decimate resale values, and seriously alienate existing customers. Would you buy a cheap shoddily built Jaguar imported into the UK from China.....I think NOT.

Just to put things straight for all the people who have commented on this so far, JLR are building cars in China because of China's hefty 100% import duty limit the amount of imported cars that can be sold. Cars built in China are for that market only. All major European manufacturers BMW, AUDI, et al are already there. Please get off the case of a British success story!!!

I worked at Peugeot in Coventry as they built an Eastern European. Within a year they were exporting from there and had shut the uk factory.

well china can do a better job then england, and it is much cheaper.

china is taking over everywhere, get used to it.

hey china is going to lead in every way, i am from japan and we lose a lot of business to china, i think its englands turn to hang up their tools and let someone that takes pride in building cars take control.