SHELL HAS announced a joint venture deal with the Shanghai Automotive Industry Corporation shortly after talks between the Chinese giant and MG Rover collapsed.
The oils and lubricants firm revealed that the new Anji Jiffy Lube Automotive Services Company would initially be piloted at ten outlets in Shanghai. It is planned that the $23m (£12m) car maintenance operation will then be rolled out in Beijing with more than 600 outlets following by 2015. Shell said the business model would be based on the North American Jiffy Lube chain, which offers while you wait services. These include fast oil changes and filter replacement plus radiator and transmission servicing. The joint venture reflects the expanding Chinese automotive market, which has 23 million cars on the road and an increasing aftersales need. David Pirret, chief executive of Shell Lubricants, said: SAIC provides a high profile and expertise in the Chinese motoring market while we offer the experience of running a successful fast lubes operation.