Chinese automotive manufacturer Chery is opening its European research and development headquarters in Liverpool, consolidating European commercial vehicle operations on Merseyside. The state-owned carmaker will centralize research, engineering, and commercial activities at the comprehensive facility.
The company has successfully entered the UK market through its Omoda and Jaecoo brands, and is now launching its primary Chery brand with former England international footballer Peter Crouch fronting the advertising campaign. This multi-pronged brand strategy demonstrates Chery’s calculated approach to market penetration.
Parallel discussions between the UK government and Jaguar Land Rover about a potential agreement for JLR to produce Chery electric vehicles have been ongoing. This arrangement was expected to feature in talks during Prime Minister Keir Starmer’s Beijing visit, though no official announcement has been made.
Business Secretary Peter Kyle has held discussions with JLR’s new chief executive, PB Balaji, regarding the potential manufacturing partnership. Sources familiar with the talks indicate Balaji has expressed conditional openness to the arrangement, provided it delivers business benefits for JLR, though no concrete agreement has been reached.
The Halewood factory on Merseyside emerges as the likely location for any manufacturing deal, given its substantial spare capacity. The plant, which produces smaller Land Rover variants including the Discovery Sport and Range Rover Evoque, has seen production volumes plummet from its 2017 peak, with operations further hampered by a cyber-attack in late 2024 that shut down all JLR facilities for weeks. Professor David Bailey from the University of Birmingham described the headquarters announcement as positive news while cautioning that no manufacturing agreement had been completed. Gong Yueqiong articulated Chery’s comprehensive vision: “Our ‘In UK, For UK, Be UK’ strategy reflects our belief that true globalisation comes from deep localisation,” with the company planning to recruit local talent, collaborate with UK institutions, and adapt to local needs, demonstrating confidence in the UK’s talent, infrastructure, and commitment to green technology as key factors in becoming a valued contributor to Britain’s automotive industry and economy.