Chery "crush" Jaguar Land Rover has submitted a joint venture application

Due to the intervention of "parents," Chery Automobile and Japanese carmaker Subaru, who both had a good relationship, had to end with a "breakup." However, in the past, Chery, who has been using "foreign capital" as a mating standard, wants to join the car industry prince Jaguar Land Rover. Yesterday, foreign media sources stated that Jaguar Land Rover is conducting in-depth negotiations with Chinese automaker Chery Automobile Co., Ltd. on the joint venture of a manufacturing company in China. Both parties have submitted joint venture applications to regulatory authorities and hope to conclude the transaction by the end of April next year.

The reporter called Chery's relevant person to verify the matter. The person said that "for this matter, the company has not announced the news to the public yet." Although both parties have always expressed their silence, this is an open secret in the industry.

Each of them needs “the cooperation between the two parties is all they need. Chery needs a joint venture company to improve its technical level and profitability, and Jaguar Land Rover needs to rely on China’s huge market.” Shi Fu’s partner Fu Zhiyong, a management consulting firm, accepts In an interview with the reporter, he said whether the approval of the regulatory authorities is a barrier that the two parties need to cross.

In fact, Jaguar Land Rover has been seeking a localization route. Since Jaguar Land Rover established a Chinese sales company last year, Jaguar Land Rover executives have publicly stated that they plan to build a factory in China. They have successively included the Great Wall, Jiangling, and Chery. Many Chinese independent brand companies have contacts. Until October 2010, Di Shihao, former vice president of Land Rover China, acknowledged to the media for the first time that Land Rover is negotiating with Chery on domestic matters.

“The United Kingdom and the United States are the two largest markets for Jaguar Land Rover, but with the decline in sales in these two markets, Land Rover has turned its attention to the fast-growing Chinese market. But compared to Mercedes-Benz and BMW, it has entered the Chinese market. It is already late. Therefore, it is particularly cautious in choosing the object. Fu Zhiyong said.

The reporters waiting to be approved learned that Chery, who wants to increase her brand image and increase profitability, has been looking for partners in recent years, but it is not going well. Chery's previous joint venture projects with Fiat and Chrysler did not bear fruit. Recently, the joint venture between Chery and Subaru has not passed the approval of the National Development and Reform Commission because it does not comply with the relevant national policies. According to the "Automotive Industry Development Policy," the number of foreign-funded joint ventures in China cannot exceed two, and Subaru is part of Toyota Motor Corporation. Toyota Motor has already cooperated with two Chinese automakers.

Industry sources believe that while China is guarding against overcapacity in the automotive industry, it has put forward higher requirements for joint venture projects, such as the need for R&D centers, independent brands, etc. These “demanding” requirements or the approval of joint ventures between Chery and Jaguar Land Rover have been further enhanced. difficult.

On August 30 this year, the Ministry of Industry and Information Technology of China announced that the “Regulations for the Administration of Production of Passenger Vehicles and Product Access (Draft for Soliciting Opinions)” proposed that the investment of new automobile production enterprises should not be less than RMB 800 million. It is necessary to establish a product research and development institution and make investments. Not less than 500 million yuan. The total investment for newly-built investment projects shall not be less than 2 billion yuan, of which the investment projects of self-owned capital vehicle and heavy-duty truck manufacturing enterprises shall include the production of engines for complete vehicles.

"According to the new regulations, for Jaguar Land Rover, which produces large-displacement models, the environmental protection requirement may be an obstacle to its review." Fu Zhiyong said. Chen Zhengze, an analyst at CSC Automotive, told reporters that Jaguar Land Rover is mainly targeting market segments. Even if this joint venture project passes, it will have no impact on the current market structure.