Jaguar Land Rover to start production at Chinese venture in 2015

Article by Anita Panait, on February 10, 2014

Jaguar Land Rover production at its Chinese joint venture with Chery Automobile Co. will start in 2015, due to delays in getting machinery and equipment, chief executive Ralf Speth has disclosed. He remarked that in principle, they expect to start producing vehicles at the joint venture this year, noting that “it was never meant to be big production."

Speth remarked that they may conduct some test building this year to have the venture’s workers trained and ready by the time production and sale start in 2015. Jaguar Land Rover considers the venture as key to its growth in China, since local manufacturing allows carmakers to sidestep the 25-percent import tariff. In 2013, the carmaker posted a 30-percent rise in sales of Jaguars and Land Rovers in China to 95,237 units. 

The JLR-Chery joint venture is planning to spend CHY10.9 billion ($1.8 billion) to construct a site in Changshu as well as an r&d center and an engine plant. The carmaker posted a 50-percent surge in profit in the fiscal first half ended Sept. 30, 2013, to GBP811 million ($1.3 billion).

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