Could JLR Build Chery Cars in the UK? Chinese Brand's Liverpool HQ Plan Revealed

Landmark Deal Could See Chinese Cars Built in British Factories

Jaguar Land Rover (JLR) is reportedly close to agreeing a significant deal that would see it manufacture vehicles for Chinese automaker Chery at its UK production facilities. This potential partnership follows Chery's confirmation that it plans to establish a new European headquarters in Liverpool, signalling a major strategic move into the British market.

Cheshire's New Automotive Hub

The proposals indicate that Chery's commercial vehicle division is set to launch a research and development headquarters on Merseyside. This subject was among many discussed during Prime Minister Kier Starmer's recent visit to China, highlighting the high-level political interest in the potential collaboration. According to reports from The Guardian, the Liverpool facility would likely encompass research, engineering, and commercial functions as part of Chery's 'localisation' strategy for Europe.

What Would a JLR-Chery Partnership Involve?

If the initial deal progresses, it could pave the way for a separate manufacturing agreement between JLR and Chery. This would involve the British marque utilising its established UK production infrastructure to build vehicles for the Chinese brand. While no final agreement has been signed, the UK government is understood to be keen on facilitating a deal. Business Secretary Peter Kyle is believed to have already discussed the matter with executives at JLR.

The proposed research and development centre has also received strong political backing from Liam Robinson, the leader of Liverpool City Council, who described the plans as a 'major vote of confidence' in the city and its workforce.

Utilising Spare Capacity and Managing Risk

A key benefit for JLR in any potential partnership would be the opportunity to take advantage of spare capacity at its manufacturing plants. Professor David Bailey, an expert in business economics at the University of Birmingham, provided insight into the strategic thinking behind such a move. He told Auto Express: 'Such moves reflect a pragmatic attempt to manage risk, improve asset use, and sustain industrial capability during a period of structural change.' He added, 'Chery is already seeing remarkable brand growth in the UK, so having it produce cars here can only be a good thing for production and consumers.'

Chery's "In UK, For UK, Be UK" Strategy

Outlining the brand's ambitious plans for the British market, Gong Yueqiong, General Manager of Chery Commercial Vehicle, stated that Chery wants to become a 'valued contributor to the UK’s automotive industry and economy'. He elaborated on the company's localisation strategy, saying: 'Our "In UK, For UK, Be UK" strategy reflects our belief that true globalisation comes from deep localisation. By recruiting local talent, collaborating with UK institutions, and adapting to local needs, we aim to become a valued contributor to the UK’s automotive industry and economy. Our strategy reflects our confidence in the UK’s talent, infrastructure, and commitment to green technology.'

As discussions continue, JLR has maintained its position and has not commented on the current speculation. The potential collaboration represents a significant development in the evolving relationship between traditional UK automotive manufacturing and ambitious Chinese car brands seeking a foothold in the European market.