What do you do when you are a manufacturer of luxury cars and sales do not go as planned? Simple: you are investing in China, because, despite the cooling of the cars on the market, buyers still an appetite for luxury foreign cars.
In July, we announced that Jaguar and Land Rover owner Tata Motors will invest heavily in both brands to improve their sales, especially those of Jaguar, there is a sharp decline.
In the same report, Tata said the company was "considering options for mounting and location of the selected products Jaguar Land Rover in China."
The problem is not limited to march to the ground and begins to build the plant. According to Chinese law, you must have a local partner. And since taxes of imported cars expensive to do, any company that sells cars in China has followed the same path.
Now JLR also explore opportunities for joint ventures. Reuters reported that according to China Business Review, JLR has decided to partner with Chery and the two companies have already obtained the approval of local authorities to carry out their business plan.
Representatives of both companies denied comment on the issue. Perhaps because Chery has already blown the Subaru was vetoed by the Council on the basis of the fact that Toyota, which is a shareholder of Subaru, is already two such countries Ventures.
If the deal goes through, JLR factory in China is expected to produce 40,000 units per year, which are sold in local markets.
Story source: Reuters
