Chery Founds IMSS with Jaguar- Land Rover Works Out Profit Allocation

At present, sales organization, which is widely noticed by outsider, of Chery- Jaguar- Land Rover comes to public. According to official announcement of Chery- Jaguar- Land Rover, Chery- Jaguar- Land Rover would found “Institution of Marketing, Sales and Service” with Jaguar- Land Rover China on May 9. The Institution will in charge of the brand sales, marketing, after sales service and brand build functions.

New founded joint venture has dispute onto sales and channel management. After avoiding the sensitive factors, the IMSS paves for Jaguar- Land Rover modes sales in China, which avoids from products introduction and profit allocation.

“The advantage of the institution is simple structure and clear profit allocation. It will not involve rights dispute which happened normally in joint ventures. However, how could the institution support Chery- Jaguar- Land Rover development when the joint venture opens market? It shall be considered as well.” a insider who knowns automobile circulation tells reporter.

According to define by Chery- Jaguar- Land Rover and Jaguar- Land Rover China, IMSS shall be founded by both sides, and managed by both sides. The institution only owns 3 functions: provide support to make sure smooth operation of Chery- Jaguar- Land Rover onto marketing, salse and after salse service.

Relative staff of Chery tells reporter, rights of both sides are equal. It just like the “3V3 Commission” of Beijing Auto and Benz. The above person tells reporter that all the dispute and issues shall be solved by negotiation by both sides.

For management aspect, LU Yi takes president of IMSS, who was the vice president of Jaguar- Land Rover before. LU Yi will reports to Bob, president of Jaguar- Land Rover Great China; BAI Run, president of Chery- Jaguar- Land Rover and ZHU Guohua, executive vice president of Chery- Jaguar- Land Rover.

Meanwhile, LU Yi is appointed as executive vice president of marketing and sales of Chery- Jaguar- Land Rover. He will cooperate with vice president of sales and service dept. Of Chery- Jaguar- Land Rover, and in charge of marketing and after sales service of Chery- Jaguar- Land Rover with HU Jun together.