Chery’s strategy for penetrating into the premium auto market segment through a joint venture has not been stopped, as the possible cooperation with Subaru was turned down due to failing to meeting the Automotive Industry Development Policy.
Chery and Jaguar Land Rover recently went to the National Development and Reform Commission (NDRC) to solicit the opinions in terms of JV, a well-informed person of China Business News said. The two parties may have ended their talks of cooperation and will enter the procedures of approval.
Subaru, which has been seeking for breaking away from Toyota to operate independently, became the first multinational carmaker that violates the bans of automotive industry policies of China.
Subaru’s Plan of Independent Operation Delayed
Subaru, the automaker seeking for domestic production through JV during the past two years, had to delay its plan, because the possible cooperation with Chery has not yet met the Automotive Industry Development Policy of China.
As early as in May, Chery and Subaru handed in their applications of establishing a JV to the NDRC; but their applications failed to be approved for violating the bans of the policies, a well-informed person said.