Two large British car manufacturers, the Jaguar Land Rover, and the Chery, have just sealed the deal. They’re set to collaborate and produce competitive cars in the country where every car manufacturer seems to have its eyes set on: China. The only thing that’s holding them back is the fact that their $2.78B deal is still subject for the approval of the Chinese government. British car manufacturers are certainly looking to expand beyond Europe because the car sales there are dropping. China, on the other hand, is showing great potential.
China seems to be immune to the economic turmoil which Europe is currently feeling. SUVs and luxury cars are still in demand in the country. This joint venture is very important for the Jaguar Land Rover whose sales have been affected by the dropping demand in Europe.
However, the deal has been stopped short because of the regulations in eastern China. Jaguar Land Rover is currently being represented by Tata Motors, a subsidiary. Chery is representing itself. No news about the progress of the request has been heard to this date but the two giant car manufacturers are looking forward to positive results.
It must be noted that getting the approval of the Chinese government can take a really long time. Fuji Heavy Industries tried to do this last year, and they still haven’t gotten through today. It is still very unclear whether or not their proposal to manufacture cars in the country has been approved.
Despite of this, JLR and Chery remain optimistic. They said that they will focus on research and development while they are waiting for the results. In the meantime, they know that JLR and Chery vehicles are wanted in China, so even if they have to wait for a long time to be approved, they know their vehicles will sell well.