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GM, Jaguar expand in China

Chery Automobile and Tata Motors’ (TTMT.NYSE, 500570.BOM) Jaguar Land Rover will jointly invest US$1.75 billion (RMB10.9 billion) to develop a 50-50 joint venture project in eastern China, Bloomberg reported. The joint company is expected to complete a factory in Changshu, Jiangsu province, in 2014 that will make engines and house a research and development facility. The JV also plans to create a new brand specifically for China. Separately, General Motors officially launched a second plant in Liuzhou, Guangxi Province, for its low-cost brand Baojun, which will produce cars priced as low as US$6,400 (RMB40, 000). The plant will have production capacity of 400,000 cars annually and may also produce Wuling models, the other low-cost brand that GM developed with Chinese partners. GM’s expansion came after rivals including Nissan Motor (7201.TYO, NISA.FRA), Ford Motor (F.NYSE) and Toyota Motor (TM.NYSE, 7203.TYO) announced plans to launch affordable models in China.

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