By FREDA LEWIS-STEMPEL, MOTORING REPORTER
Chinese car giant Chery is opening a new European headquarters in the UK in its latest move to dominate the British market.
The new centre in Liverpool will support research, engineering and commercial development for Chery Commercial Vehicles (CCV) as the Wuhu-based manufacturer looks to expand its European van business.
Focused specifically on research and development, the site isn't expected to build any vehicles with production retained in its home nation.
Liverpool City Council called the headquarters 'one of the most significant projects' for the city's manufacturing in recent years, with Labour Council Leader Liam Robinson describing it as 'a huge opportunity', stating that it will 'bring some great, high-skilled, well-paid jobs to the city'.
It follows reports that Chery is looking to utilise spare capacity at a JLR (formerly Jaguar Land Rover) factories to build its cars in the UK - something the government is reportedly pushing for.
Prime Minister Sir Keir Starmer is currently in China with representatives from JLR who are set to meet with Chery during the Prime Minister's three-day trip.
JLR and Chery have refused to comment on the deal.
Chinese car giant Chery is opening a European headquarter in the UK which will be located in Liverpool
Chery is the latest Chinese car maker to have opened facilities in the UK, following in the path of Geely - owner of Volvo, Polestar and Lotus - which set up a R&D base in Coventry back in 2018.
The Liverpool Echo reported that the R&D centre will enable Chery to use a UK supply chain and that hundreds of jobs will be created.
The location of the site or its opening date have yet to be confirmed.
It's expected that Chery will use a JLR site with 'undercapacity' in the near future to expand its own brand of cars in the UK.
Sources close to JLR and Chery told the Financial Times the UK has been actively courting Chery to make its vehicles in Britain for the last few years.
JLR and Chery have been in partnership since their first joint venture back in 2012.
The Liverpool Echo has reported that the R&D centre will enable Chery to use a UK supply chain and that hundreds of jobs will be created
The most recent deal between the two, announced in June 2024, saw JLR agreed to license its Freelander brand to Chery to develop electric vehicles using the Chinese group’s platform.
The move to create a UK-based partnership between Chery and JLR is part of the government's efforts to fix the UK's vehicle production, with outputs falling to a 73-year low last year to 760,000 units.
This is less than half the volume recorded in 2015 (almost 1.6 million).
Such a deal would be vital for the government to achieve its target of 1.3 million vehicles produced annually, reports have claimed.
The Daily Mail and This is Money reached out to both Chery and JLR.
Both provided a no comment response.
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