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Boost For Car Industry As JLR Sign New Deal

It is no surprise that with the current economic climate, car manufacturers have faced a looming crisis over the last few years. Widespread laying off of staff and plant closures across the country have been common in the news, and things have been looking increasingly grim that is, until recently. Recent figures reveal that emerging economies have actually enhanced the demand for certain British manufactured vehicles, with Jaguar Land Rover at the forefront of this now burgeoning trade.

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In March this year, Jaguar Land Rover signed a historical deal with Chinas Chery Automobile, renewing hope for improved sales of cars and Land Rover spares in these now budding markets, and with the announcement of the creation of a further 1,500 jobs in their West Midlands plant, JLRs miraculous recovery following near state bailout in the first throes of the economic crisis seems to have been confirmed. The key to this turnaround has undoubtedly been the push into emerging markets in China and Russia, as the new elite seek the luxury of these iconic, British-born vehicles.

After the UK and the USA China represents the biggest export market for JLR, purchasing one out of six cars manufactured last year. The market has increased at a staggering rate, rising 60% in 2011 with sales figures of 42,000, and representing 17.2% of Jaguar Land Rovers exports in the third quarter of last year. This joint venture, if approved by regulatory bodies, will be key to further development in the market and give a much-needed confidence boost to the manufacturing industry.

Jaguar Land Rover have stated that if the move goes to plan, they will first begin the production of Land Rover SUVs with Jaguars to follow. It is hoped that with new joint owned facilities, they will be able to establish new research and development facilities, and build on the strength of knowledge each one can provide. This in turn, is hoped to have a positive knock-on effect for the UKs luxury car manufacturing industry.

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Posted in Transportation/Automotive Post Date 01/09/2015






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