Chery has asked the Chinese government for its blessing regarding a joint venture with Jaguar Land Rover worth $1.9 billion.
The proposal calls for a new plant in the Jiangsu province that would produce as many as 130,000 cars per year. Chinese government officials will have to perform an environmental assessment before the plant goes ahead. Approval from the National Development and Reform Commission, China’s main governmental economic body, will also be required
Chery recently saw plans for a tie-up with Subaru go belly-up, but an agreement with JLR combined with China’s appetite for luxury vehicles and SUVs should help take the sting out. Jaguar will need to help make some of its product more attractive for China – a V6 engine has been cited as a must-have for the XJ due to taxation reasons.
ICT4PE&D
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