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Chinese automotive manufacturer Chery is set to establish a new research and development headquarters in Liverpool, signaling a significant expansion of its European operations. This development may also open the door to a potential collaboration with Jaguar Land Rover (JLR), one of the UK’s leading carmakers, for the production of vehicles. The new facility, focused on research, engineering, and commercial activities, will serve as the hub for Chery’s commercial vehicle division in Europe, based in the Merseyside region.
Chery has already made inroads into the UK market with its Omoda and Jaecoo models, and it is actively promoting its flagship brand through an advertising campaign featuring former England footballer Peter Crouch. Meanwhile, the UK government has reportedly been exploring plans to have Jaguar Land Rover manufacture Chery’s electric vehicles domestically. Discussions around this potential partnership were expected to be part of the agenda during Keir Starmer’s visit to Beijing, though no formal agreement has yet been announced.
Victor Zhang, director of Chery UK, revealed earlier this year that the company was “actively considering” the establishment of a manufacturing plant in the UK as part of a strategy emphasizing localisation. Gong Yueqiong, the general manager of Chery Commercial Vehicle, emphasized the company’s commitment to the British market by stating, “We are not just bringing products to the UK – we are building a British business.” Business Secretary Peter Kyle has reportedly engaged in talks with PB Balaji, JLR’s new chief executive, who indicated openness to the idea if it proves beneficial, though insiders suggest no concrete deal has been made.
Industry experts note that any manufacturing arrangement would likely utilize available capacity at JLR’s Halewood plant, also located in Merseyside. According to David Bailey, a business economics professor at the University of Birmingham, the announcement of Chery’s new European headquarters is “very good news” but cautioned that manufacturing agreements remain tentative. The Halewood facility, which produces smaller Land Rover models like the Discovery Sport and Range Rover Evoque, has seen a decline in output since its peak in 2017. Production was notably disrupted last year due to a cyber-attack that halted operations for several weeks. Liverpool city council leader Liam Robinson welcomed Chery’s decision, highlighting it as “a major vote of confidence in our city’s capabilities, our workforce and our long-term vision for clean, inclusive growth.”
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