Chinese auto firm could produce vehicles in Merseyside

Chinese electric vehicle maker Chery Commercial Vehicle announced it is setting up its European headquarters in Liverpool – and it has now emerged Chery vehicles could also be built in Merseyside. Tony McDonough reports

Chery Commercial Vehicle is setting up its European base in Liverpool

 

Details about Chinese electric vehicle maker Chery Commercial Vehicle’s new European headquarters in Liverpool remain sketchy.

What is clear is the new operation, which it is believed could create hundreds of jobs in the city, will focus on research, engineering, innovation and commercial development and will not be doing any manufacturing.

However, it has now emerged that Chery Automobile, a separate business but part of the same Chery group of businesses as Chery Commercial Vehicle, is in talks with Jaguar Land Rover (JLR) over a deal that could see Chinese EVs assembled in the UK.

It has been widely reported in the automotive press that Chery is keen to utilise spare capacity in JLR’s factories which include the plant at Halewood in Merseyside JLR where 3,500 people are currently employed. JLR declined to comment on the talks.

There is already a commercial relationship between the two companies. In 2012 they formed Chery Jaguar Land Rover to assemble JLR vehicles in China and that arrangement remains live.

There are also other options in Liverpool city region should Chery, which focuses on “next generation” commercial vehicles, including electric, hydrogen and autonomous platforms, want to set up a manufacturing base here.

A senior Liverpool business figure with extensive experience in establishing commercial relationships between the city region and China believes the LCR Freeport could offer a crucial competitive advantage.

“They could set up a manufacturing operation within one of the LCR Freeport sites and enjoy significant tax advantages as they look to produce vehicles and export them into the Eurozone,” he told LBN.

LCR Freeport is located across a number of city region locations. Companies basing their operations within the zone benefit from enhanced capital allowances, business rates relief, stamp duty land tax relief and Employer National Insurance contributions relief.

 

Chery Commercial Vehicle exports its vehicles all over the world
Chery could utilise spare manufacturing capcity at JLR factories

 

Last week LBN revealed that Parkside Regeneration has submitted a planning application for phase two of its giant commercial scheme at the former Parkside Colliery in Newton-le-Willows is successful.

Councillors in St Helens have already given the go-ahead for phase one which comprises 800,000 sq ft of logistics space. Phase two will offer 1.6m sq ft of space and, interestingly, includes both logistics and manufacturing accommodation.

Crucially, this development sits within the LCR Freeport Zone and could be a serious option should any of the Chery entities decide to build a manufacturing plant within Liverpool city region.

Gong Yueqiong, general manager of Chery Commercial Vehicle, said last week: “We are not just bringing products to the UK—we are building a British business. Our ‘In UK, For UK, Be UK’ 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.

“Our strategy reflects our confidence in the UK’s talent, infrastructure, and commitment to green technology. Liverpool offers the perfect environment for Chery Commercial Vehicle’s European ambitions.”

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