Chery and Jaguar Land Rover form joint venture company Aurora or Domestic

Cherish Automobile Co., Ltd. (hereinafter referred to as "Chery") and Jaguar Land Rover Motor Co. (hereinafter referred to as "Jaguar Land Rover") have finally been publicized last week. Last week, the two parties jointly announced that the two sides have reached an agreement on the establishment of a joint venture company in China. Chery and Jaguar Land Rover plan to establish a joint venture company in the form of a stock exchange.

Chery "confidence"

Chery said in the news release that the agreement reached between the two parties includes: production of Jaguar Land Rover brand models and joint-venture models of their own brands, production of matching engines, sales of automotive products produced by joint venture companies, establishment of R&D centers, etc. However, no specific terms of the agreement were disclosed. However, the two parties did not disclose the details of the establishment of the joint venture company, the location of the factory, etc., saying only that "the two parties will carry out further work in accordance with the relevant procedures."

Whether the two parties can truly “hand in hand” depends on whether the NDRC approves the joint venture project. Earlier reports said that the two sides have submitted an application to the National Development and Reform Commission, but the NDRC agreed whether the suspense remains. The rumor that Chery and Jaguar Land Rover established a joint venture company has existed for more than a year, but both sides have remained silent and announced the intention of the joint venture before the approval has been obtained. Chery’s approach is thought-provoking.

An insider of Chery introduced that Chery had sought to establish a joint venture with a foreign brand as early as 2007, but several joint venture failures made Chery more cautious. This time it has announced that it has reached a joint venture agreement with Jaguar Land Rover and Chery has “full confidence”.

The joint venture has been the commonest wish of both parties for more than ten years. Chery is currently the largest independent brand automobile company in China. Chery’s sales reached 640,000 vehicles last year. Chery, who has been adhering to positive development for many years, has faced increasing pressure from domestic competition and joint venture brand prices. In recent years, domestic sales have been unsatisfactory, and companies have taken many detours.

As early as 2007, Chery began to seek joint ventures with foreign brands. Chery hopes to cooperate with them to learn the experience of production management of foreign brands and even advanced technology, while at the same time improving their own profitability. Chery has successively announced cooperation with Chrysler and Fiat, but it has never ended. The only Israeli group that has established a cooperative relationship with Chery does not have any history of automobile production.

Zhang Zhiyong, an automotive analyst, believes that the cooperation with Jaguar Land Rover is very beneficial to Chery. Although Jaguar Land Rover is unlikely to transfer core technology to Chery, through the establishment of R&D centers and other programs, “Chery can get some things in terms of management and technology. This is quite beneficial to the development of Chery."

Jaguar Land Rover, which is affiliated with the Indian Tata Motors, has been looking for the possibility of localized production in China. In 2005, Jaguar Land Rover’s sales in the Chinese market accounted for only 1% of its total sales. Today, the Chinese market has become the third largest market for Jaguar Land Rover in the world and continues to grow. Jaguar Land Rover’s sales in the Chinese market in 2011 increased by 60% to 42,000 vehicles.

Guess 1 joint venture factory settled in Changshu Chery and Jaguar Land Rover's joint venture will establish a new factory. At the end of last year, Jaguar Land Rover CEO Ralf Speth once said: "Jaguar Land Rover plans to invest 100 million pounds in China to build a new factory with 5,000 employees and an annual output of 50,000." But this factory will be built where it is not yet Determined that the current situation is the most likely to look at Jiangsu Changshu.

Local media reported that at the mobilization meeting held on January 29 in Changshu City, Zhang Jianzhong, deputy secretary of the Party Working Committee of the Changshu Economic and Technological Development Zone and deputy director of the management committee, stated that the development zone must create an industry with 100 billion yuan in industrial characteristics, that is, “ Focused on the implementation of the Qoro Automobile Project with a total investment of 15 billion yuan, accelerating the approval of the Land Rover project with a total investment of 17.5 billion yuan, and accelerating the approval of the construction of auto parts companies such as Taiwan's Rayleigh chassis parts project and Germany's Benteler Axle Project. , gradually forming a distinct feature of the automotive industry clusters, by 2015 to form a scale of 100 billion yuan output value."

However, some people think that the headquarters of Chery's headquarters in Wuhu, Anhui Province, hopes that the joint venture project will be located in Wuhu. Prior to this, the joint venture of Chery and the Israeli group Guanzhi Automobile Plant has been opened in Changshu. Changshu is superior to Wuhu in terms of geographical location and talent introduction.

Conjecture 2 Range Rover Aurora will make it a bit too early to talk about the production of a joint-venture model. However, there have been many sources that many of the best-selling vehicles, including the Land Rover Range Rover Aurora, will become the domestic first choice.

Land Rover Range Rover Aurora has been hot worldwide since it was listed last year. This official guide price of more than 60 million vehicles in the Beijing market even once appeared to need to increase the price of several hundred thousand dollars "miracle." In addition, other Land Rover models including Discovery and Range Rover may also appear on the domestic model list. The two sides are very clear that the demand for luxury SUVs in the Chinese market is very strong.

In terms of Jaguar brand, a Jaguar model with an all-aluminum body will be put into production at a Chinese factory. Some people have speculated that this car will be the future X-Type "resurrection" in the Jaguar product line, Jaguar will use this car to compete with the BMW 3 Series, Mercedes-Benz C and other models.

In addition to the Jaguar Land Rover brand, both parties have already confirmed that they will put into production "joint autonomous" brand models. This is considered by outsiders as a requirement to meet China's auto industry policy.