A month ago, Jaguar Land Rover signed a joint-venture agreement with China's Chery Automobile Company. JLR's 12.1 billion yuan ($1.9 billion U.S.) investment, if approved, will pay for a plant in Changsu to build Jaguars, Land Rovers, engines and joint-venture models. The facility will also house a research and development center. Chery has submitted the paperwork to clear the deal with the Chinese government. The agreement must pass muster with the Ministry of Enviroment Protection, after which it will go to the National Development and Reform Commission.

When the agreement was first inked an Indian analyst said, "it will be some time before we see the results," a nod to the fact that government approvals can take a long time. Subaru is an instructive example, having signed an agreement with Chery a year ago. Sources said the deal was ready to be approved last November, but that was the last that has been heard of it – it's still waiting on the necessary signatures.

But JLR has the long view in mind: it sold 38,890 vehicles in China last year – all imported – a figure representing double-digit sales gains for both brands. The proposed factory will have a capacity of 130,000 units, providing a healthy buffer in case the bureaucracy sits on things.


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    • 1 Second Ago
  • 10 Comments
      rmkensington
      • 2 Years Ago
      "Ministry of Enviroment Protection" LOL
      Chris Bangle
      • 2 Years Ago
      Chery was going to be Subaru's partner. Chery wasted no time in finding a replacement after the Chinese government barred Subaru.
      Sir Duke
      • 2 Years Ago
      Okay, so JLR is out making deals with Ford engine technology? Is Ford okay with this? In 5 years, Ford will be competing with Chinese knock-off EcoBoost engines. Ha!!
        hmmwv
        • 2 Years Ago
        @Sir Duke
        Ford already has its vehicles made in China via the Chang'an Ford joint venture, tech transfers have been going on for many years now, no need to wait for this deal.
        aatbloke1967
        • 2 Years Ago
        @Sir Duke
        JLR also uses PSA/Ford JV diesel units. When Tata bought JLR, it also bought the intellectual property rights of technology in the products concerned. Those agreements usually wouldn't proclude future production ventures for specific markets - as is the case here - but may contain clauses restricting use of said technology in any proposed future sale of the company.
      • 2 Years Ago
      Man, we don't want to see a chinese Jag. Keep their hands off the car. Please.
      KAG
      • 2 Years Ago
      And now we lost another two cool British brands.
      • 2 Years Ago
      [blocked]