Fighting for Imported Car Sales Authority, Negotiation Between Chery and Land Rover Deadlocked

Benz China and Beijing Auto has fight for Benz sales authority. Now the same scenario has happened on Chery and Land Rover.

“When they negotiated about imported car sales authority, they agreed to talk about the issue later.” Some inner mouth said negotiation between the two companies does not progress at present because the problem has not solved at the beginning.

In the first half this year, Chery-Land Rover joint venture investment has been approved. At present, Jaguar- Land Rover China still controls two brands sales, and extends its import car dealers network.

Early this year, Zhengyue Yi, president and general manager of Chery, said at foundation stone laying ceremony of Chery- Land Rover Changshu Plant that “Chery will invite its high quality dealers to join Jaguar- Land Rover sales channel. And we except dealers to watch and learn, and get prepared for China made joint venture car sales.”

If the negotiation between Chery and Land Rover has not settled, the cooperation of them has a long way to go even if joint venture investment located in Changshu has been approved.

Imported car does not share joint venture brand channel, and joint venture brand does not share imported car channel. Even if imported and domestic made share their networks, it still will hamper the short product line Land Rover brand because of different management team.

Tongyue Yi has invited dealers by himself, but Chery dealers still meet problems when applying for joining Jaguar- Land Rover. For an example, Wuhu Chery dealer has applied agency position for Jaguar-Land Rover before, but because it has local dealer already, Jaguar-Land Rover China has not approved that.

Jaguar-Land Rover does not let imported car authority go because of profit. At present, Jaguar- Land Rover sales has reached 73 thousand in China already, and grow very fast as well. If imported car business has been managed by joint venture, it means exported car profit shall be partly taken by Chery.