Jaguar Land Rover and Chery Automobile agree deal to sell vehicles in China

http://www.guardian.co.uk/business/2012/mar/21/jaguar-land-rover-chery-automobile-china

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Jaguar Land Rover has finalised a joint venture agreement with Chery Automobile to manufacture and sell vehicles in China, the two companies have announced.

The agreement is a boost for JLR's efforts to further expand in the fastest-growing major market for its saloons and SUVs.

Luxury cars remain in demand even as the overall car market cools, but the deal is just one step in a complex process. JLR – owned by India's Tata Motors – and Chery are seeking regulatory approval for the 17.5bn yuan (£1.75bn) venture in eastern China, two people with direct knowledge of the deal told Reuters.

The joint venture will manufacture JLR and JV-branded vehicles and engines, set up a research and development facility and sell vehicles produced by the JV, the carmakers said.