Chery Jaguar Land Rover JV gains official approval from Chinese government

Gasgoo.com (Shanghai September 22) - The 10 billion yuan ($1.58b) joint venture between Chery and Jaguar Land Rover has officially gained approval from the National Development and Reform Commission, Economic Observer News reported today.

The Jiangsu-based joint venture will soon begin the next phase of registrations, as well as laying foundations for its sites. The news was confirmed by several mid- and high-level staff from both Chery and the new JV. "The cooperation between Chery and Jaguar Land Rover has indeed gained written approval, although the information has yet to be posted on the NDRC's official website," a source from Chery was quoted as saying. The source added that the news has been very warmly received by Chery's staff.

It has only taken four months for the joint venture to be agreed upon and certified by the NDRC, a record amount of time. By comparison, it has taken 28 months for the NDRC to approve the split up between Changan Ford and Changan Mazda. It only took two months after its initial application for the JV to gain the Ministry of Environmental Protection's approval.

According to estimations, the NDRC should officially announce its approval of the JV by early October. However, having already received official written approval, Chery and Jaguar Land Rover can begin directly working on the JV.