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Jaguar Land Rover And Chery Automobile Set Cornerstone For New Chinese Manufacturing Partnership

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Jiangsu, China & Coventry, UK: Jaguar Land Rover and Chery Automobile Company Ltd, the British and Chinese carmakers, today formally laid the foundation stone for their new manufacturing facility in the People's Republic of China.  

The two companies recently received formal approval from the Chinese Government for their joint venture and now have a licence to manufacture Jaguar Land Rover vehicles and new models for a partnership brand in China.

Jaguar Land Rover and Chery will now accelerate plans to build a joint venture manufacturing plant in Changshu, near Shanghai, as part of a 10.9bn RMB investment that will also include a new research and development centre and engine production facility. The project includes the creation of a new partnership brand to assemble models tailored specifically for the Chinese market, including the marketing and distribution.

The benefits of the joint venture to China include investment, job creation, advanced technology and low carbon solutions. The joint venture will 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.

The JV underlines a firm commitment from both companies to the world's largest car market for the long term future.

In a joint statement, at today's press conference in Jiangsu, Dr. Ralf Speth, Jaguar Land Rover Chief Executive Officer, and Mr Yin Tongyao, Chairman and Chief Executive Officer of Chery Automobile Company Ltd, said: "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 name of the new joint venture company was also confirmed today by Dr. Ralf Speth and Mr Yin Tongyao. The equal partnership will be called - Chery Jaguar Land Rover Automotive Company Ltd.

In addition to established vehicles, the partnership will also produce models for a domestic brand tailored specifically to local customer demand. Both companies are committed to investing heavily into product innovation and advanced technologies using a new Research and Development Centre, more details of which will be released at a later date.

The two companies plan to complete the Changshu facility in Jiangsu province during 2014. Construction of a new engine plant for production of fuel efficient engines is also part of the JV partnership agreement.

The confidence of Chery's partnership with Jaguar Land Rover follows rapid expansion of the Jaguar and Land Rover brands in China, where sales rose 80 per cent in the first 10 months to October 2012. In the 2011 calendar year, Jaguar Land Rover saw sales increase more than 60 per cent, driven mainly by the Jaguar XJ and XF models, and strong demand for the fuel-efficient Range Rover Evoque. 

Chery, the largest Chinese car exporter and one of the country's most productive automotive manufacturers, has 15 years' experience in the automobile industry.

The partnership with Jaguar Land Rover signals the start of international expansion and strategic development for Chery Automobile.


Editor's notes:

Background on Jaguar Land Rover
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 of around 25,000 employees, sells vehicles in more than 170 countries. The UK, North America and China are its largest markets. Jaguar Land Rover PLC, the holding company for Jaguar and Land Rover, reported profits before tax of £1,507m in the financial year 2011/12, on revenues of £13,512 million.  Jaguar Land Rover's head office is in Coventry, in the United Kingdom.

In 2005, sales in China accounted for 1% of combined Jaguar and Land Rover sales. It is now one of Jaguar Land Rover's main markets and is still growing; sales increased by 80% during the year to October 2012.

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 over 60 countries.

Chery products include passenger cars, SUVs as well as engines and transmissions. In 2011, Chery has recorded sales of 643,000 units, ranked No. 6 among the passenger vehicle manufacturers in China.


Media Communications contacts:

In China:
Ken McConomy - Head of Corporate Relations, Jaguar Land Rover
Tel: +44 (0)7714 725 236          

Lisa Palmer -  Senior Communications Officer, Jaguar Land Rover
Tel: +44 (0) 7557 540 611          

In the UK:
Nick O'Donnell - Global Corporate PR Manager, Jaguar Land Rover
Tel: +44 (0) 7825 115 951         

Olivia Brook - Senior Communications Officer - International, Jaguar Land Rover
Tel: +44 (0)7887 451 616          


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