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Liverpool Lands Chery European Hub as JLR Manufacturing Deal Takes Shape

by admin477351

Liverpool has been chosen as the site for Chinese carmaker Chery’s European research and development headquarters, bringing European commercial vehicle operations to Merseyside. The state-owned manufacturer will house research, engineering, and commercial functions at the comprehensive facility.

Chery has built a presence in the UK market through its Omoda and Jaecoo brands, and is launching its primary Chery brand with an advertising campaign fronted by former England footballer Peter Crouch. The strategic brand rollout reflects the company’s long-term commitment to the British automotive sector.

Parallel to this expansion, the UK government has been exploring an arrangement for Jaguar Land Rover to build Chery electric vehicles domestically. While this potential partnership was expected to feature in discussions during Prime Minister Keir Starmer’s Beijing visit, no official announcement has emerged.

Professor David Bailey from the University of Birmingham suggested any manufacturing agreement would likely utilize spare capacity at JLR’s Halewood facility on Merseyside, describing the headquarters announcement as positive news while noting no manufacturing deal had been finalized. The Halewood plant, which produces the Land Rover Discovery Sport and Range Rover Evoque, has substantial excess capacity following production declines from over 200,000 vehicles in 2017.

JLR’s operations faced additional challenges when a cyber-attack in late 2024 completely halted production for several weeks. Business Secretary Peter Kyle has engaged with JLR’s newly appointed chief executive, PB Balaji, about the potential manufacturing partnership, with sources indicating conditional support for the idea. Liverpool city council leader Liam Robinson welcomed Chery’s investment as a major vote of confidence in the city. Gong Yueqiong, general manager of Chery Commercial Vehicle, emphasized: “We are not just bringing products to the UK – we are building a British business,” with the company’s localization strategy centered on recruiting local talent, collaborating with British institutions, and adapting to local needs to become an integral contributor to the UK’s automotive industry and economy, reflecting confidence in Britain’s talent pool, infrastructure, and green technology commitment.

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