Photo: Jaguar - Land Rover
Jaguar-Land Rover and Chery Automobile Co. have announced that they will be investing a total of $1.75-billion / €1.7-billion in their new plant, which will be built somewhere in eastern China. The costs will be supported equally by the two parties, and the factory is set to be completed in 2014.
J-LR is keen to begin production in China, as it is its fastest-growing market, and is the last of the luxury European manufacturers to begin production in the PRC. Also, the Chinese government requires manufacturers from outside the country to work with local companies, in order to avoid the country’s steep 25% import tax.
According to Bill Russo, president of Synergistic Ltd., "Both parties need each other [. . .] JLR needs to be localized because quite frankly their competition is localizing. It gives Chery an opportunity to really upgrade its capabilities in a time when it really needs that."
With J-LR profits skyrocketing up 77% in the second quarter, thanks mainly to very strong sales in China, lead by the Evoque, has helped the group offset its sub-par European performance. Sales will go up even more, next year, as they will also be launching the all-new Range Rover, and by October of 2013, they will undoubtedly surpass this year’s record of 294,291 vehicles sold.
Story via europe.autonews.com
According to Bill Russo, president of Synergistic Ltd., "Both parties need each other [. . .] JLR needs to be localized because quite frankly their competition is localizing. It gives Chery an opportunity to really upgrade its capabilities in a time when it really needs that."
With J-LR profits skyrocketing up 77% in the second quarter, thanks mainly to very strong sales in China, lead by the Evoque, has helped the group offset its sub-par European performance. Sales will go up even more, next year, as they will also be launching the all-new Range Rover, and by October of 2013, they will undoubtedly surpass this year’s record of 294,291 vehicles sold.
Story via europe.autonews.com
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