Jaguar Land Rover (JLR) and Chery Automobile Company Ltd have
reached agreement on a proposed joint venture in China.
The agreement follows extensive talks between JLR and Chery on establishing an equal partnership company. The scope of the proposed joint venture (JV) would include manufacture of JLR- and JV-branded vehicles; establishment of a research and development facility; engine manufacture; and sale of vehicles produced by the JV company.
JLR and Chery will now follow the official process to establish a joint venture company in China.
In a joint statement, Dr Ralf Speth, JLR Chief Executive Officer, and Mr Yin Tongyao, Chairman and Chief Executive Officer of Chery Automobile Company Ltd, 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 inChinaand 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 are not being disclosed at this time and as such, no further details are available.
Background on JLR
Jaguar Land Rover (JLR), a wholly-owned subsidiary of Tata Motors, is the largest manufacturer of premium vehicles in the UK. The company, with a global workforce exceeding 21,000 employees, sells vehicles in more than 170 countries. The UK, North America and China are its largest markets.
In 2005, sales in China accounted for 1% of combined Jaguar and Land Rover sales. It is now JLR's third largest market and is still growing; annual sales in 2011 increased by 60%, to 42,000.
JLR is headquartered at Whitley, near the UK city of Coventry.
Background on Chery
Chery Automobile Co. Ltd was founded on 8 January 1997. The company is headquartered in Wuhu, Anhui Province, China. Since its formation, Chery has emerged as one of China's largest and most productive automotive manufacturers. Chery is also China's largest vehicle exporter to markets in over 60 countries.
Chery products include passenger cars, SUVs as well as engines and transmissions. In 2011, Chery recorded sales of 643,000 units, ranked No. 6 among the passenger vehicle manufacturers in China.
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