Chinese state-owned automotive manufacturer Chery has announced plans to establish its European headquarters in Liverpool, marking a significant strategic move into the UK market. The new base will serve as the operational centre for Chery Commercial Vehicle, encompassing research and development, engineering, and commercial functions across the continent.
Potential Manufacturing Partnership with Jaguar Land Rover
This development comes alongside ongoing discussions between the UK government and Jaguar Land Rover (JLR) regarding a potential manufacturing agreement. Under this proposed deal, JLR—the UK's largest automotive manufacturing employer—could utilise spare capacity at its Halewood plant in Merseyside to produce electric vehicles for Chery's brands, including Omoda and Jaecoo.
Victor Zhang, Chery's UK director, revealed in June that the company is "actively considering" constructing a production facility in Britain as part of a broader localisation strategy. This aligns with comments from Gong Yueqiong, General Manager of Chery Commercial Vehicle, who stated: "We are not just bringing products to the UK – we are building a British business."
Government Involvement and Industry Perspectives
The potential collaboration was expected to feature in talks during Keir Starmer's recent visit to Beijing, though no formal agreement has been announced. Business Secretary Peter Kyle has reportedly discussed the matter with JLR's new Chief Executive, PB Balaji, who indicated openness to the arrangement if it proves beneficial for the business.
David Bailey, Professor of Business Economics at the University of Birmingham, described the headquarters announcement as "very good news" but noted that no manufacturing deal has been finalised. He suggested that Chery's localisation strategy could logically involve leveraging available capacity at JLR's Halewood facility, which currently produces Land Rover Discovery Sport and Range Rover Evoque models.
Local Economic Impact and Strategic Vision
Liam Robinson, Leader of Liverpool City Council, welcomed the decision, calling it a "major vote of confidence in our city's capabilities, our workforce and our long-term vision for clean, inclusive growth." The move strengthens Merseyside's automotive cluster, which already includes Ford's transmission and electric drive unit production adjacent to JLR, and Stellantis' van manufacturing in Ellesmere Port.
Gong emphasised Chery's commitment through its "In UK, For UK, Be UK" strategy, stating: "Our 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."
Chery has already gained traction in the UK market with its Omoda and Jaecoo brands and is launching its eponymous brand with an advertising campaign featuring former England footballer Peter Crouch. JLR has declined to comment on the ongoing discussions, while industry observers await further developments that could reshape the UK's automotive manufacturing landscape.
