Jaguar Land Rover and Chery Plan Joint Chinese Venture

 

 

 

 

Jaguar Land Rover, which is owned by India?s Tata Motors, announced they have finalized the details on a joint venture with Chinese automaker Chery to build and sell vehicles in China. The joint venture agreement is subject to approval from the Chinese government.

According to Automotive News Europe, if the plan goes through the joint venture will establish a joint research and development facility, manufacture Jaguar Land Rover- and JV-branded vehicles and engines, and sell the products created by the joint venture.

Sources familiar with the endeavor say the two companies may invest as much as $3 billion over five years. The same sources said $1 billion of the funds would go toward building a new factory, from $500 million to $1 billion would be used to establish the new brand and $1 billion would be used for R&D.