Jaguar has stemmed the flow of ruinous news from the UK automotive industry by announcing a £600 million deal to supply 13,000 cars to China.
SCAS Investment Group will buy 10,000 Land Rovers and 3,000 Jaguars over three years. They will be sold to individuals, in dealerships, in a region which has experienced a rapid rise in demand in recent years to become JLR’s fifth biggest market.
A spokesperson for Jaguar Land Rover said: “This shows an immediate commitment in us from them and gives us a solid base to build up our business in China. The initiative came from the Chinese government, which pulled together this trade package.”
The trade package also involves good news for Rolls-Royce which will supply £800m of aircraft engines to Hong King Airlines.
Unveiling the package at a meeting in London with business secretary Peter Mandelson, Chen Deming, Chinese commerce minister, said: “We clearly see we should make our import-export trade more balanced. Only by working together can countries work out of this economic low.”
A decision on whether or not the 15,000 staff at the Tata-owned company accept the pay-freeze and short-term hours offered to them in return for job securities will be made when the employees vote on the matter next week.