JLR-Cherry Tie Up Confirmed for China


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Jaguar Land Rover and Chery Automobile Company have reached agreement on their proposed joint venture in China. The scope of the proposed joint venture would include manufacture of Jaguar Land Rover and joint-venture branded vehicles; establishment of a research and development facility; engine manufacture; and sale of vehicles produced by the joint-venture company, which so far has no official name.

Under Chinese government regulations, foreign car manufacturers can only build manufacturing plants in China if they sign joint venture deals with indigenous brands. They also have to launch Chinese-market-only sub-brands.
Jaguar Land Rover's deal follows several years of negotiations by the UK-based company with potential partners.

In a joint statement, Ralf Speth, JLR chief executive and Yin Tongyao, chairman and chief executive of Chery Automobile, 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.

“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.”

The precise terms and conditions of the commercial agreement have not been disclosed. Most of JLR’s Chinese sales come from Land Rovers. The Chinese-built Jaguars and Land Rovers are expected to only be sold in China. Chery Automobile was founded in 1997 and is China’s largest vehicle exporter.
Source:
JLR-Chery tie-up confirmed - Autocar.co.uk
 
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Another piece of info:
Tata Motors-owned Jaguar Land Rover will invest 3.5 billion yuan (over Rs 2,800 crore) in its joint venture with Chery Automobile in China to commence local assembly in the Asian country.

The two auto makers, which announced the equal joint venture yesterday, had signed the agreement in December last year and have joined hands for 30 years.

"We have committed to invest CNY 3.5 billion of equity capital in the JV company, representing 50 per cent of the share capital and voting rights of the JV company. The term of the joint venture is 30 years (unless terminated or extended)," Jaguar Land Rover told investors of Tata Motors.

In a presentation available on Tata Motors' website, the British subsidiary said the JV firm will develop, manufacture and sell some Jaguar Land Rover (JLR) models and at least one JV-branded vehicle in China.

"In December 2011, we entered into a joint venture agreement with Chery Automobile Company Ltd for the establishment of a joint venture company in China," JLR said.

The company said the joint venture agreement contains representations and warranties, indemnities, corporate governance provisions, non-compete clauses, termination provisions and other provisions that are "arm's length in nature and customary in similar manufacturing joint ventures".

Further, the investor update said: "The legal effectiveness of the joint venture agreement is subject to the satisfaction of several conditions, including certain required Chinese government approvals."

Announcing the association yesterday, JLR had said the new JV entity will manufacture vehicles, engines and set up a research and development centre in China.

Earlier the company had said the joint venture could have an initial production capacity of 50,000 units, employing about 5,000 people.

China is currently JLR's third largest market. In 2011, sales increased by 60 to 42,000 units.

Based in Wuhu in Anhui Province, Chery Automobile rolls out passenger cars, SUVs as well as engines and transmissions.
Source:
Tata Motors' Jaguar Land Rover to invest over Rs 2,800 crore in China JV - The Economic Times
 
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When putting forward a plan for a joint venture one of the first departments that you need to clear is the Ministry of Environment. China in 2012 is far from being the poster boy for environmental concern, but that is changing quite rapidly, simply put if your business plans are not lean and green, then you do not get the rubber stamp from the Environment Agency and you have to start your application once more.

The good news for Chery and JLR is that their application has already gone through the Ministry of Environment and is now on its way to the National Development and Reform Council, (NDRC) the all powerful body that oversees any inwards or outwards investment in China. JLR’s plans for China include producing 130,000 cars per year in China with a total investment of 13 billion RMB being invested into the new JV by both parties. The JV will be based in Changshu city, around 100km from Shanghai.

http://www.chinacartimes.com/2012/06/22/jlrchery-jv-clears-hurdle/
 
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JLR gets Chinese govt nod for JV with Chery

Tata Motors-owned Jaguar Land Rover's (JLR) proposed joint venture with Chinese automaker Chery Auto has been approved by the country's National Development and Reform Commission.

Quoting Chery Auto, Chinese official news agency Xinhua today said the approval came about six months after the company had announced the 12-billion-yuan (USD 1.89 billion) venture with JLR in March, although most similar joint ventures normally take a year to get approval.

"The process was short because Chery was familiar with the approval procedure and did not waste time," the agency said quoting a spokesman of Chery Auto.
The joint venture's new automobile plant, located in the city of Changshu near Shanghai, is expected to have an assembly line, an engine factory and a research centre.

As per the agreement between the two partners, the plant will have a capacity of 1,30,000 units a year -- mostly Land Rover and Jaguar vehicles, but also joint venture brands. It is scheduled to be operational in 2014, the report said.

China is one of the biggest markets for JLR and sales reached 53,000 units in the first nine months of the year, up 80 per cent from a year earlier, according to the China Association of Automobile Manufacturers, the report said.

On the other hand, Chery, which has been successful in the domestic low-end market, saw its sales drop by 11.5 per cent to 4,12,500 units in the first nine months of the year, it added.

JLR gets Chinese govt nod for JV with Chery
 
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Good Info Visran

I am seeing lot of CHERY BEIJING showrooms in Brasil

Think they are really making it happen big time in export markets

And a JV of Indian - Sino companies is not heard of in any industry

Will be good to see the outcome in 4-5 yrs
 
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Good Info Visran

I am seeing lot of CHERY BEIJING showrooms in Brasil

Think they are really making it happen big time in export markets

And a JV of Indian - Sino companies is not heard of in any industry

Will be good to see the outcome in 4-5 yrs
How is Mahindra's presence in Brazil as of now? I guess they are marketing Scorpio which is directly imported from India
 
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China is Now Jaguar-Land Rover’s Primary Market!

Jaguar and Land Rover have been slowly growing on the Chinese market, where their products have been highly-appreciated ever since they first started selling them in the PRC. Now, after two years of sustained growth, it has become their largest, most lucrative and most important market.

The boss of their Chinese operations, Bob Grace said: “Two years ago when I came here, our business in China was not in the top five. Look at any business metric - China is (now) Number 1. Quite honestly, it has only just started, so there is still a lot of adventure up ahead." With 60,000 units delivered in the PRC, from January to October, things have really taken off for the Brits - the number represents a 90% growth over last year’s figures for the same time frame (in 2010, they sold 26,000 units, while in 2011, they managed to sell 42,000 units in total).

Grace went on to say that the growth will continue, as the luxury car market in China will maintain its strong growth well into next year, and quite possibly doubling the predicted 6% to 10% figure originally brought forth by analysts. Also, with the expansion into the southern part of the country, the only way to go is up - the region currently accounts for just 14% of all sales, and the number is expected to grow ‘quite significantly’ in the coming months.

China is Now Jaguar-Land Rover
 
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Hope Tata doesn't bring any spares of JLR made in China to India, else who knows before taking car home from dealer, engine will fall down or body will slip from chassis. [lol]
 
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Jaguar Land Rover, Chery to invest $1.75 billion on China plant

Tata Motors' Jaguar Land Rover unit and Chery Automobile Co. will invest 10.9 billion yuan ($1.75 billion) to build a manufacturing plant in eastern China and create a new brand to cater to the nation's consumers.

The 50:50 venture will also set up a research and development center, with the factory targeted to be completed in 2014,
http://europe.autonews.com/apps/pbc...r-chery-to-invest-1-75-billion-on-china-plant
 
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