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JLR and Chery joint venture

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

JLR Chery logo

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.

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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.

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