More details have emerged on the Chery-Jaguar-Land Rover joint venture. Chery and JLR reached an agreement on the joint venture in March and are now waiting for the final approval by the Chinese government. The plans are impressive and include an engine plant which will make engines especially for the Chinese market.

Production will start in 2014. Initial capacity of the car factory will be 130.000 cars annually, by 2020 capacity will reach 250.000 cars. In 2014 the joint venture plans to build 34.000 Range Rover Evoques, 43.000 Range Rover Freelanders and 23.000 Jaguar ‘sedans’, which type or types is yet unclear.

The engine plant will produce three engines: a 1.6 TGDI turbo, a 2.0 TGDI turbo and a 3.0 V6.  Both (patrol) TGDI engines are designed by Chery and will also power the upcoming Chery-Quantum Qoros. The joint venture will develop the engines for duty in the Evoque and Freelander. Chinese media report that engineers from JLR in the UK will move to the joint venture’s Changshu plant near Shanghai to assist with the development.

The joint venture will use imported JLR engines (240hp 2.0) until the TGDI engines are ready, when exactly that will be is not clear. The initial production plan is 125.000 TGDI engines and only 5000 V6 engines.

Chery is betting big on small engines for SUV’s and JLR seems to agree. Big question is: will JLR use the China-developed engines in other markets as well? Chinese media are silent on this subject for the moment.

Via: 163.com.

New spy shots from the new Range Rover testing in China, it will likely debut late this year and hit the market in early 2013. China is now the third biggest market worldwide for Range Rover so it wants to make sure the new car behaves on Chinese roads. The new Range Rover will also be longer for more space in the back, something that especially Chinese car buyers have been asking for.

Price of the current Range Rover starts at 1.5 million yuan. The new Range will move upmarket so price is expected to start around 1.8 million. Engines for the Chinese market, all patrol: V6 (from Jaguar), V8 and supercharged V8.

The new Range Rover will be imported into China. Jaguar-Land Rover (JLR) is still working to get permission for a joint venture with Chery. Production is at least two years away, when permission is secured the joint venture still needs to build a factory. The cars that will most likely made in China first are the Evoque and Freelander.

Longer tail easy to see here.

Via: Autohome.

The Jaguar XJL Ulitmate is the ultimate XJL when it comes to luxury for passengers in the back, perfectly so for China and no wonder it debuted at the Beijing Auto Show. This is the second XJ designed for the Chinese market, last year Jaguar sold out a limited ‘XJ Panorama Business Edition‘ in just a few months, this new Ultimate isn’t limited but will likely sell like hot rice anyway.

Both the 385 and 510 V8′s are available. Jaguar will also offer the 3.0 diesel in the Ultimate in the rest of the world but not in Chinese where diesels are forbidden in most big cities. Chinese car buyers wouldn’t buy it anyway, 99% will go for the supercharged 510hp power plant.

Ultimate = the best materials, lotta leather and a lotta wood, a fridge and a table for drinking baijiu cold,and four screens so the businessman can check the stock market on one screen and sing kareoke with the other. This indeed, is a cultural thing, Jaguar understands.

The very first spy shots of the new Range Rover testing in China. The new Range Rover will internationally debut late this year, its China-debut is expected at the Guangzhou Auto Show in December.

The early test in China is no coincidence, China is now the third market worldwide for Jaguar-Land Rover and Tata wants to make sure their new flagship is ready for Chinese roads.

The Range Rover-range will also be made in China in the future by the new and almost approved Chery-JLR joint venture. Actual production however is at least two years away, when the approval is finally secured the joint-venture still needs to build a factory…

Via: Sina.com.

Jaguar Land Rover has clinched a joint venture deal with China’s Chery Automobile in a move that promises to boost sales in one of its fastest-growing markets. Sales of JLR’s sleek saloons and powerful SUVs in China have boomed in recent years as luxury cars remain in demand, even as the overall market cools.

China is JLR’s third largest market after the UK and US. One in six Land Rovers, Range Rovers and Jaguars built last year were shipped to China, where sales grew to 42,000, an increase of more than 60% in a year.

In 2000, China produced more than 2m cars. In 2011, that figure had risen to about 18.5m.

Chery and JLR are understood to be seeking regulatory approval for the $2.8bn (£1.8bn) venture to manufacture and sell luxury cars in China, although that could be only weeks away.

Wednesday’s agreement is a boost for JLR, which is owned by India’s Tata Motors and is Britain’s biggest employer within the industry with a workforce of more than 21,000. Sales in China contributed 17.2% of JLR’s revenue in the quarter to the end of December, more than the UK, the birthplace of the two brands.

A push into emerging markets such as China and Russia has been one of the key factors in the turnaround in JLR’s fortunes since Tata bought the brands in 2008.

The China tie-up, if approved, would give JLR a much sought-after production base in a market where global luxury carmakers, including BMW and Daimler AG’s Mercedes-Benz, are reaping benefits from the growing ranks of wealthy Chinese.

JLR and Chery will look to share research and development, technology and manufacturing knowledge across the joint venture, the companies said. They added: “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.”

The venture, to be located near Shanghai in Changshu city, will initially make Land Rover SUVs, followed by Jaguars in the second phase. “This is an important step for JLR and Tata Motors,” Vineet Hetamasaria, auto analyst at PINC Research in Mumbai, told Reuters. “This is only an agreement, and it will be some time before we see the results.”

A new, jointly owned company will be formed, with a view to establishing a research and development facility. It will aim to develop and manufacture new models, as well as set up engine manufacturing operations and create a sales network in China. Both firms said they wished to “leverage” their respective strengths.

Recently, JLR said it was creating 1,000 jobs in the West Midlands as the firm continued to roar back to financial health. That announcement confirmed a remarkable recovery by the carmaker, which was close to seeking a state bailout during the credit crunch.

JLR said the jobs in Solihull would be dedicated to increasing production of the Range Rover, Range Rover Sport, Discovery and Defender.

Via: Guardian.

British off-road icon Land Rover plans to join the ranks of global automakers making vehicles in China by partnering with Chery Automobile Co Ltd in a joint venture. Local media reports said the partnership will be based in the Changshu Economic and Technological Development Area in Jiangsu province.

Both sides have reached agreement on the new venture and are now awaiting approval from the National Development and Reform Commission, China’s top economic planner, sources familiar with the issue told reporters.

Changshu, in the heart of the Yangtze River Delta, is only an hour’s drive from Shanghai. About 60 percent of China’s auto component makers are located in the city and neighboring areas.

In addition to a plant assembling Land Rovers, the NDRC is requiring the partnership to produce a new wholly owned brand, and have an engine factory and R&D center.

Jaguar cars, made by the same UK company, are not part of the current deal for local production in China.

According to the agreement between Chery and Jaguar Land Rover, the joint venture will have a planned production capacity of 50,000 units at its initial stage, overseas media reported.

The report cited Ralf Speth, Jaguar Land Rover CEO, saying Land Rover plans to invest 100 million pounds ($158 million) in the joint venture, which will have 5,000 employees.

The recent agreement requires the board chairman of the new joint venture to be appointed by Chery, while president will be selected from Jaguar Land Rover.

Chery, headquartered in Wuhu, Anhui province, already has production facilities in Changshu, a prosperous eastern city.

Chery and US-based Quantum LLC formed the Chery Quantum Auto Co – the domestic automaker’s first joint venture – in Changshu in 2007.

The partnership’s first car, the Quantum compact, will hit European and Chinese markets by late 2013, Chery said.

China became Jaguar Land Rover’s third-largest market in 2011 as it sold more than 42,000 vehicles in the country, a 61 percent increase from a year previous.

The majority were Land Rover vehicles, some 36,087 of the total, up 54 percent from 2010.

Its dealer network expanded to 113 authorized outlets by the end of the year.

China is expected to surpass the UK to become Land Rover’s second-largest market following the US this year, and become the biggest in 2013, Hu Bo, deputy executive president of Land Rover China said during an earlier interview.

The Chery-Land Rover partnership in Changshu will have Land Rover’s first manufacturing factory outside the UK, said sources familiar with the joint venture.

Chery is China’s biggest auto exporter, now making inroads in South America and Russia, but it has not entered US or Western European markets with its own-brand cars.

Last year, Chery and Fuji Heavy Industries, the parent of Subaru, agreed to make Subaru vehicles in Northeast China where major automakers including BMW and Volkswagen all have factories.

The agreement calls for their joint venture in Dalian, Liaoning province to have an initial annual production capacity of 50,000 units and 150,000 units at build out.

But local media are reporting the plan failed to win approval from the NDRC.

In 2011, Chery was the nation’s largest domestic automaker for the 11th consecutive year, selling 643,000 vehicles globally. It exported 160,200 cars, the most from China for the ninth consecutive year.

Via: ChinaDaily.

Jaguar Land Rover and Chery Automobile Co are seeking regulatory approval for a 17.5 billion yuan ($2.78 billion) car venture in eastern China, two people with direct knowledge of the deal told Reuters on Monday.

The deal marks Jaguar Land Rover’s latest effort to expand its appeal in the world’s largest auto market where luxury sedans and SUVs remain in hot demand even as the overall car market cools.

The JLR-Chery venture, to be located close to Shanghai in Changshu city, will make Land Rover SUVs initially, followed by Jaguars in the second phase, one person told Reuters.

“The plan is still subject to the approval of the National Development and Reform Commission at this stage. The size of the investment could be adjusted accordingly,” another person said.

Both sources declined to be named because of the sensitive nature of the proceedings.

JLR, controlled by India’s Tata Motors Ltd had previously explored joint venture deals with other Chinese partners, including Great Wall Motor Co Ltd, but made little headway.

A Tata Motor spokesman declined to comment on the Chery tie, but its CFO, C.R. Ramakrishnan, said recently that JLR had already picked a Chinese partner.

The Chery tie, if approved, will give JLR a much-desired local production base in China where global luxury markers including BMW, Mercedes-Benz and Audi have already made windfalls, thanks to growing ranks of wealthy Chinese.

All three German marques, which started local manufacturing in China years ago, saw their China sales rise more than a third in 2011 when the overall market slowed after years of frantic expansion.

JLR sold 42,000 cars in China last year, about 13 percent of Audi’s tally of roughly 313,000.

TIGHTENING APPROVALS

When China opened its doors to foreign automakers 30 years ago, the approval process was relatively straightforward. But now that General Motors, Volkswagen and other foreign producers dominate the market and China’s native auto industry remains uncompetitive, Beijing has started to raise the bar for new entrants.

The government recently removed the auto industry from a list of encouraged industries, making it tougher for foreigners to win new auto projects.

Fuji Heavy Industries, which intends to make Subarus with Chery in China, submitted its deal for approval last year, but regulators have yet to announce a decision and it is unclear when, or whether, they will approve it.

Fuji said Monday it has no update on its application for a joint venture in China. Officials at Chery declined to comment.

In a bid to shore up domestic automakers, Beijing recently said it would implement new rules requiring government departments to buy only local car brands.

If carmakers at a local-foreign auto venture want to sell cars to Chinese government agencies, the venture must set up its own joint research and development facility and invest 3 percent of its annual proceeds in R&D for at least two consecutive years, according to the country’s new rules. The venture is also required to develop and build its own car brand.

It is unclear whether any similar rules are in place for new foreign joint ventures and it is unclear what JLR has committed in order to get a foothold in the country.

A source told Reuters that the automaker has committed to jointly invest in a research facility with Chery.

“It’s hard to second guess the whether the JLR deal would get the green light. But one thing is obvious, it’s getting harder and harder for foreign automakers to get joint venture deal in China,” said John Zeng, director for industry consultancy LMC Automotive Asia Pacific region.

Via: Reuters.

Reuters cites “two people with direct knowledge of the matter” who are saying that Jaguar Land Rover (JLR) and Chery Auto are working out the final details of a deal to start a joint venture for making JLR-cars in China.

Parties have asked the Chinese central government for approval and aim to announce the forming of the joint venture at the Beijing Auto Show in April.

Well, we will see. JLR and Chery have been talking and talking for over a year now and the Chinese government has just announced it will be much more strict in approving new foreign investment in the auto sector. It seems to me the JV ain’t a sure thing just yet.

It seems Chery is working on developing two luxury-brands. The first one is Qoros which is meant for export to Europe. The second one is a possible new sub-brand which will sell Jaguar-developed cars under the Chery brand in China. Reuters reports on the Jaguar-story:

Jaguar Land Rover (JLR) has agreed in principle with China’s Chery Automobile to develop a luxury car based on its Jaguar models that may carry a Chery or a new marque in order to win Chinese government approval for a manufacturing venture, a Chinese newspaper reported.

Britain-based JLR, a subsidiary of Tata Motors Ltd had previously explored cooperation with Chinese partners, including Great Wall Motor Co Ltd but made little headway.

“The National Development and Reform Commission NDRC.L made it very clear that in order to get approval for the project to go ahead, the two sides must have substantial cooperation, not just adding new capacity,” the 21st Century Business Herold said, citing an unnamed source.

The NDRC has the power to approve or block major foreign joint venture projects.

A proposed tie-up between Chery and Fuji Heavy Industries Ltd to make Subaru vehicles in China hit regulatory snags because the deal was ruled to lack substance, according to the source.

The newspaper said a car co-developed by JLR and Chery would carry either a Chery logo or a joint venture logo and the two sides might also collaborate on green vehicles.

Chery and JLR executives could not immediately be reached for comment.

Via: Reuters.

Jaguar Land Rover is awaiting a response from the National Development and Reform Commission regarding a request to develop a potential Chinese joint venture, according to Jaguar Land Rover President Bob Grace. Media reports said the company Jaguar has chosen is very likely to be Chery.

Both Jaguar and its partner have submitted requests to the NDRC. A response is expected by next April. Some in the industry doubt that the proposal may gain official approval, as JLR’s key products are large-engine-sized vehicles, which go against the Chinese trend for smaller and more fuel efficient cars.

Land Rover’s Chinese sales this year have exceeded 33,600 units, 60 percent higher than last year. Meanwhile, JLR’s sales have decreased in its home market of Europe and across the world, with the manufacturer facing increasing competition from Mercedes-Benz, BMW and Volvo. The manufacturer has sold over 40,000 vehicles worldwide so far this year.

Via: ChinaDaily.