Jaguar Land Rover inks joint venture with China's Chery

Jaguar Land Rover and Chinese automaker Chery Automobile Company have filed paperwork to enter into a joint venture. Under the agreement, the two Tata Motors properties will manufacture both Jag and Land Rover 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 Jaguar 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 Automotive News reports, last year Subaru 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.