China Approves Chery-JLR Joint Venture

Chery Automobile Co. and Jaguar Land Rover have received permission from China's National Development and Reform Commission to form a 12.1 billion-yuan ($1.9 billion) joint venture to make Land Rover SUVs and Jaguar cars.

The venture, which will be based in Changshu in Jiangsu Province, will have annual capacity of 130,000 vehicles and an unspecified number of engines.

Chinese news reports say the factory near Shanghai will open in 2014. JLR told the BBC earlier this month that production will begin with the Freelander or Range Rover Evoque compact SUV. The partners plan to add production of Jaguar models later and to co-develop vehicles for a new China-specific brand.

JLR owner Tata Motors Ltd. declared in May 2011 that it was seeking a Chinese partner for the elite British brands. Chery and JLR finalized the joint venture agreement in March. Their venture request has raced through China's often-glacial approval process. National and local environmental authorities have already agreed to the plan.

JLR assembles vehicles from kits in several countries. But the Changshu plant will be its first to fully build vehicles outside the U.K. and will use Chinese-made parts.