Well it will save on shipping them to china!
its not the shipping costs that cause manufacturers to set up joint ventures in China.
The import tax on a vehicle made outside China is HUUGE,
Whilst if you setup a joint venture outfit within China you are exempt from the import tax (as the Chinese Economy / Govt) is now creating employment & creating work / business for their supply chain.
Although JLR are selling well in China, to compete with the likes of BMW, VW, Merc with volume sales you need to have a Joint Ventrure in place...
youve also seriously reduced the labour costs as well.not to forget transport costs.
been on the cards for at least 2 / 3 years tho.
youve also seriously reduced the labour costs as well.not to forget transport costs.
Yeah but auto manufacture is a capital-intensive industry in which labour isn't such a big deal, and transport costs peanuts.
But not if they unbolt the equipment in speke,liverpool and put it on a boat to china, just like a firm i used to work had happen to them.
Which could be a future plan of theirs.