Joint venture to invest 10.9B RMB to build manufacturing plant, R&D center and engine plant
After receiving a formal approval from the Chinese Government, British and Chinese carmakers Jaguar Land Rover and Chery formally laid the foundation stone for their new manufacturing facility in the Jiangsu province. The government license allows the companies to manufacture Jaugar Land Rover vehicles and new models for a new partnership brand in China.
The new company called Chery Jaguar Land Rover Automotive Company Limited, will invest 10.9B RMB and is now accelerating their plans to build a joint venture manufacturing plant in Changshu, located in Jiangsu province (near Shanghai). The companies expect completion of the plant by 2014. The investment also includes a new research and development center and engine production facility. As with all automotive partnerships in China, the project includes the creation of a new partnership brand to assemble China-specific models.
"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 recognizing the potential of our joint venture in the fast-growing Chinese market," said Dr. Ralf Speth, Jaguar Land Rover CEO; and Mr. Yin Tongyao, Chairman and CEO of Chery.
The joint venture seeks to blend together the heritage and experience of luxury premium vehicle manufacturer Jaguar Land Rover with the intricate knowledge and understanding of Chinese customers evident at Chery.
"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," added the chief executives.
The partnership with Jaguar Land Rover signals the start of international expansion and strategic development for Chery Automobile.