Auto Special: Chery Jaguar Land Rover Changshu plant fully operational

The first China-made Range Rover Evoque rolled off the production line of Chery Jaguar Land Rover's plant in Changshu, Jiangsu province, on Oct 21, signaling the joint venture is ready to begin full business operation. It is also the first full-scale automobile manufacturing facility of Jaguar Land Rover outside the UK.

The 10.9 billion ($1.78 billion) yuan plant, a joint venture between Chinese automaker Chery Automobile and Jaguar Land Rover, is designed to produce 130,000 vehicles each year.

China has been Jaguar Land Rover's largest market since 2012, accounting for almost one-fourth of its sales globally, and one in five Range Rover Evoques has been sold to China since its debut in 2011.

Locally made Evoques will reach the market in early 2015 and the automaker will make public their prices at that time.

Addressing questions whether the locally produced vehicles are equally good as those manufactured in the United Kingdom, president of Chery Jaguar Land Rover Chris Bryant said quality is the joint venture's No 1 objective.

"Chery Jaguar Land Rover remains committed to delivering excellence in its quest to lead the Chinese premium automotive industry through its historic British lineage, world-class quality and unique shared value approach," he said.

As a major milestone for the first Sino-British premium automotive joint venture, the opening ceremony also signifies the dawn of a new era for the Chinese premium automotive industry.

Yin Tongyue, president and CEO of Chery Automobile, said, "I strongly believe that Chery Jaguar Land Rover has a promising future and will provide premium auto products that exceed every Chinese consumer's expectations."

Dedicated to becoming a leading enterprise that inspires excellence in the premium automotive market in China, the joint venture has taken several steps to ensure it can provide top-of-the-line quality for its customers. These include establishing an industry leading quality control system, an advanced R&D Center and a nationwide sales network.

Equipped with top international standard press, body, paint, trim and final shops - along with an engine plant - the Changshu plant is "one of the world's most advanced and efficient manufacturing facilities", the company said.

Among other facilities, it has 306 robots that undertake 85 percent of the welding work and 20 percent of the finished models undergo full-vehicle checks at the plant's quality center, according to the company.

Bryant said another critical element to ensure quality is to make sure employees understand the quality the automaker wants to deliver.

"I will give you an example. Our first workers at the plant were hired in June 2013, more than half a year before we started operation, so that they can understand the quality requirements," he said.

Workers in key positions have received three months training in the UK and 95 percent of all workers in the plant have at least five years working experience, the company said.

Bryant also said local suppliers are selected according to the same standards as those in the UK.

"The Changshu plant is a significant milestone in our commitment to the Chinese market. We are small, but China is huge," said Ralf Speth, CEO of Jaguar Land Rover at the plant's opening ceremony.

Success story

Jaguar Land Rover sold 92,300 vehicles in the first nine months of the year in the Chinese market, a 38.7 percent surge from the same period a year earlier.

Now that the plant is fully operational, many in the auto industry believe the British premium brand will further close its gap in sales with the three German marques.

However, Bryant said sales alone are not the joint venture's focus. "Both volume and profit are the output of a successful business. And we will be successful when we deliver to customers what they desire and deserve. So we focus not on the sales but on improving customer satisfaction."

Chery Jaguar Land Rover has established a superlative operation and management structure, with a highly practical and efficient management team that is fully committed to realizing the joint venture's long-term development in China, and to fulfill consumer expectations and needs with its products and services.

Through its jointly managed Integrated Marketing Sales and Service organization established earlier this year, Chery Jaguar Land Rover will promote efficient operation of marketing, sales and after-sales service work, to ensure customers enjoy the best possible relationship with the joint venture, as well as establish its position in the forefront of the premium automotive market in China.

Zhu Guohua, deputy president of Chery Jaguar Land Rover, said the joint venture has built a network of 243 dealerships nationwide, and will add more to extend excellent sales and after-sales services to Chinese customers.

In addition to the Range Rover Evoque already in production, Zhu said that by 2016, the plant will be producing three Jaguar Land Rover models. He added the plant would also produce joint venture brand models in the future.

Therefore, the joint venture is investing in making new breakthroughs in product research and development with the construction of a research and development center.

Staffed with more than 290 experienced product development engineers, the center covers product planning, project management, process, system and engineering applications, trial production, testing for finished vehicles, product localization design, improvement of emission and engine performance as well as new energy development.