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Jaguar Land Rover and Chery investing in Chinese plant

Chris Tutor — Fri, 23 Nov 2012 08:00:00 EST

Filed under: Luxury, China, Jaguar, Land Rover, Tata, Chery, Plants/Manufacturing, Marketing/Advertising

While the European auto market for Jaguar and Land Rover is waning, Chinese car buyers can't get enough of the British marques. To meet that demand, Tata Motors, parent company of Jag and Land Rover, is partnering with Chinese automaker Chery Automobile Co. The two have announced plans to invest US$1.75 billion to build a new plant and create a new, China-focused brand. The two have set 2014 as their target for completion of the factory. Jaguars and Land Rovers built at the facility will be the first ever produced outside the UK according to the Associated Press. The JV will be called Chery Jaguar Land Rover Automotive Company Ltd.

The announcement comes less than a month after JLR announced it would open a design studio in China. It's not clear from the reports if the two announcements are part of the same JV or two separate plans.

China requires any company wanting to set up domestic production to partner with a local business. By doing so, JLR avoids a 25-per cent tariff on imported cars. Chery benefits from a planned research and development center as well as a chance to "really upgrade its capabilities," according to Bill Russo of Synergistic Ltd. in Beijing.

You can read the official press release below.

Continue reading Jaguar Land Rover and Chery investing in Chinese plant

Jaguar Land Rover and Chery investing in Chinese plant originally appeared on Autoblog Canada on Fri, 23 Nov 2012 08:00:00 EST. Please see our terms for use of feeds.

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Chinese-market Land Rover Freelander and Range Rover Evoque to use Chery engines?

Jonathon Ramsey — Tue, 22 May 2012 08:28:00 EST

Filed under: Luxury, Crossover, Jaguar, Land Rover, Chery, SUV

A couple of developments on the recent Jaguar/Land Rover joint venture are being reported in Chinese media based on a report in China's Economic Daily News. The 130,000-capacity factory planned for Jiangsu is epected to mint its first vehicle in 2014, with numbers given for the breakdown so far as: 43,000 Land Rover Freelander 2s, 34,000 Range Rover Evoque models (called the Aurora in China) and, according to Google Translate, "the joint venture brand vehicles of 23,000 Jaguar sedan."

We're not sure if that really means 23,000 Jags will be made, since that would be a six-fold multiplier of Jaguar's 2011 sales in China. The quoted Land Rover production would only be doubling its sales tally from 2011, even though the brand's sales were up 105 percent in Q1 of this year. There will be a separate joint-venture brand created between JLR and Chery as well, so that could be a part of it. Futher on, the plan is for the plant to expand to a capacity of 250,000 units.

More interestingly, the locally-made engines will be JLR's 3.0-litre V6 alongside two Chery motors, a 1.6-litre TGDI turbo and a 2.0-litre TGDI, with plans to "gradually introduce" the Chery engines into the Land Rovers. JLR engineers are said to be moving to China to continue joint development of the TGDI motors, which has apparently been ongoing. Until those are ready, JLR will import its 240-horsepower, 2.0-litre motor.

The report in China's 163.com is also interesting for the regulatory and business context it provides on the joint venture, with government rules mandating the minimum amount of investment and the establishment of R&D centers. The tie-up is said to be a boon to Chery's fortunes in light of the assertion that Chery's "operating conditions are not ideal" and that getting the "core technology" for its own brands had "become the top priority of the project approval." Official approval of the JV is expected later this year.

More after the jump.

Continue reading Chinese-market Land Rover Freelander and Range Rover Evoque to use Chery engines?

Chinese-market Land Rover Freelander and Range Rover Evoque to use Chery engines? originally appeared on Autoblog Canada on Tue, 22 May 2012 08:28:00 EST. Please see our terms for use of feeds.

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Chery to (finally) invade Europe after 2015

Chris Shunk — Thu, 13 Oct 2011 08:01:00 EST

Filed under: China, Europe, Chery

Chinese automakers have had a heck of a time trying to crack the crowded European vehicle market, but Chery is hoping to change that in a few years. Automotive News reports that Chery is hoping to take up shop in Europe sometime after 2015.

Chery Deputy General Manager Lu Jianhui reportedly provided the 2015 timeline as the planned date to offer the brand in Europe, but added "we are still focusing on Russia and South America, among others, as our major export markets." Chery is already moving a lot of metal in those emerging markets, with a planned 180,000 vehicles for export in 2011. The automaker hopes to bump that sum closer to one million vehicles before the decade is out.

The 2015 timeline comes after news of a joint venture between Chery and Israel Corp to build three vehicles. The 1.5-billion-euro project would result in vehicles to be sold in China, followed by European sales one year later.

News Source: Automotive News - sub. req.

Chery to (finally) invade Europe after 2015 originally appeared on Autoblog Canada on Thu, 13 Oct 2011 08:01:00 EST. Please see our terms for use of feeds.

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