THE Philippines’ top official of Chery Automobiles said that the recent joint-venture agreement between Chery and Jaguar Land Rover in China will be beneficial to both companies.

In an exclusive interview, Dr. Si Chung Chang, chief executive director of Chery Motors Phils. Inc., the country’s sole distributor of Chery Automobiles Ltd. from China, said that the joint venture would give results to both sides with regards to finances and technology.

For Chery, the collaboration would result to constant and stable profit. The partnership involves a total investment of $2 billion, which would come from both parties. Chang said that collaboration will enhance the technology of Chery and learn new ideas from Jaguar Land Rover.

“For example, Chery could learn Jaguar Land Rover’s management style and new technology. Chery can learn from it and develop their own after being educated,” he said, adding that should Jaguar Land Rover think of creating smaller models, it could also learn from Chery.

Chang assured that “the joint venture will not bring competition but further boost cash flow for both companies,’ noting that “all joint ventures have made money in China.”

The executive said that Chery could help in exporting the products of the partnership as Chery—which makes passenger cars, utility vehicles and engines—is one of China’s largest carmakers and exports to more than 60 countries.

“Maybe Chery can also help in exporting Jaguar Land Rover models around the globe,” he said. Chang noted that in the joint venture, the two companies can exchange ideas, and in time, develop their own products.

A research and development facility and a manufacturing plant in China’s eastern city of Changshu will be put up, which is targeted to operate in 2014.

“The joint-venture company plan is to have a capacity of 130,000 units yearly, including a full car manufacturing plant, an engine manufacturing plant and an R&D center,” Chang said. “Within the 130,000 units, 34,000 units will be Land Rover Evoque models, 43,000 units will be Land Rover Freelander models, 30,000 units will be Jaguar models and 23,000 units will come from joint venture’s new brand,” he added.

The models from the new brand will be based on Jaguar but the engines and other parts will come from Chery. In terms of engine production, Chang said that 125,000 units of 2.0-liter TGDI engines and 5,000 3.0-liter V6 engines will be produced by Chery. The new models will get the 2.0-liter engine that is now used on the Chery Tiggo.

“According to news, the model to be developed by the new company will use the body of Jaguar XJ but with Chery’s engine and transmission. So, we might have a chance to see Chery-Jaguar model being exported to the Philippines at the end of 2014,” Chang said.