Chery Automobile Company
have filed paperwork to enter into a joint venture. Under the agreement, the two
properties will manufacture both Jag and
vehicles and engines, as well as a new line of vehicles developed with Chery. The joint venture will also create a research and development lab and sell the products created by the partnership. Land Rover has had its eye on boosting sales the still-growing Chinese market for some time, and the move looks to be a smart first step in that direction. While overall vehicle demand has softened in China, wealthy buyers are still thirsty for status-symbol vehicles like those in the
and Land Rover portfolios.
Now that both companies have agreed upon the terms, the automakers must get approval from the Chinese government before the joint venture can become official.
Land Rover isn't the first company to jump into bed with Chery. As
reports, last year
submitted a a deal with the Chinese company to regulators to produce vehicles in the People's Republic. So far, no announcement has been made on that venture's progress.