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GELYY News Jaguar Land Rover to Set up China Plant.

Wednesday, November 17, 2010 6:09 AM

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News for 'GELYY' - (Jaguar Land Rover to Set up China Plant)

NANCHANG, Nov 17, 2010 (SinoCast Daily Business Beat via COMTEX) -- Jaguar Land
Rover, a UK-based subsidiary of India's largest automobile manufacturer Tata
Motors, lately said that it is seeking to set up a China plant with a workforce
of 5,000 and a yearly output of 50,000, with a budget of USD 162.1 million. The
plant is expected to be located in the city of Nanchang, Jiangxi Province.

Jaguar Land Rover is currently in talks to form a joint venture with Chinese
carmaker Chery Automobile. China-based Geely Automobile Holdings Ltd. (SEHK:
0175), in the Zhejiang province, has just completed the acquisition of Volvo and
is also being considered as a potential JV partner.

The decision has been made by the company's Indian owners TATA, which has put
two leading German motor industry executives in charge of running one of the
UK's traditional automotive 'crown jewels'.

The luxury car company said it was likely to begin building Land Rovers in
China, as well as in India, but 'did not rule out' building Jaguars there too.

In order to accelerate the establishment of its China joint venture, Jaguar Land
Rover has been seeking to poach key executives from luxury car brands such as
Porsche and BMW, to set up the Beijing company and to be responsible for
strategic planning matters with regard to Jaguar and Land Rover brands.

Both the Jaguar and Land Rover brands have experienced dramatic growth in China.
According to the latest statistics, Land Rover sales in China rose 116 percent
year on year to 16,149 units during the first nine months of 2010, while Jaguar
sales totaled 2,155 units, an increase of 71 percent from the same period as
last year.

Land Rover may be interested in manufacturing SUVs in China at first. Later,
Jaguar products may eventually show up, as well. For now, it's unclear exactly
what Jaguar Land Rover would bring to the partnership other than stacks of hard
cash and brand equity, though that may be incentive enough for a mystery Chinese
automaker.

Driving the move is a boom in sales in the two key markets that heavily penalize
car exports from Britain with heavy tariffs, which disappear if the cars are
built in the countries themselves.

Much of the growth came from China, where Jaguar sales rose 38 per cent and Land
Rover sales rose 55 per cent during the year. The market is also strong in
India.

The news to move some Jaguar Land Rover production to China comes as new Prime
Minster David Cameron prepares to take delivery of a new armored flagship Jaguar
XJ limousine, to replace the current previous generation model.

(USD 1 = CNY 6.64)

http://202.155.223.21/~geelmhk1/en/index.html

Source: http://www.nanfangdaily.com.cn (November 17, 2010)

Copyright 2008 SinoCast Daily Business Beat. All rights reserved

-0-

KEYWORD: NANCHANG

INDUSTRY KEYWORD: Transportation & automobile

SUBJECT CODE: Automobiles

Motor Vehicles

SinoCast China Business Daily news

SinoCast China Transportation Watch

SUV

China

India

plant

joint venture

partnership

car export

Source: Comtex Wall Street News
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