Jaguar and Land Rover’s Big Chinese TakeawayFri, 27 Feb 2009 00:00:00 -0800
As we are only too well aware, car makers are having the most torrid of times. Massive drops in car sales in the UK (at least in new cars – UK used car sales are actually rising) means car makers’ cashflows are horrific. But it looks like there’s a white knight on the horizon for Tata’s Jaguar / Land Rover.
Apparently, there’s a delegation of Chinese Business leaders, headed by China’s Minister of Commerce Chen Demming, headed to Europe on a buying spree, and Jaguar Land Rover are to get sales of 6,000 Land Rovers and 3,000 Jaguars, at a total cost of around £430 Million.
Jaguar and Land Rover get a £430 million Chinese bonus
Now I have no doubt that the Chinese will get an even better deal on Jaguars and Land Rovers than the shrewd buyer here can ( discounts of 25% on most Land Rover models are achievable) but this is a huge boost for Tata in troubled times.
In total, the Chinese delegation is expected to spend around £12 billion across Europe on their visit, which will give the Chinese access to machinery, cars and food products in a gesture designed to placate fears of protectionism by the Chinese. Europe is a huge market for Chinese goods, and with Europe in financial chaos it is crucial that the Chinese are seen as two-way trade partners if they are to maintain the access they have to European markets for their goods.
And we’d better get used to this. China is rapidly becoming a huge force in the world economy, and the next decade will potentially see them becoming the most economically powerful nation on earth.
Time to brush up our Cantonese?!
By Cars UK