Range Rover Sport front three quarters right

Jaguar Land Rover is very interested in a plant in Mexico

April 28, 2015

Jaguar Land Rover is considering Mexico as an option for a new production plant, as per a fresh report from Bloomberg. The luxury automaker is one of the many automakers eyeing Mexico production due its highly appealing business environment. Arch-rival BMW has already announced last year that it will build a new plant here.

Citing a conversation with Joseph ChamaSrour, Jaguar director general for the brand in the country, the report suggests an investment of more than US$500 million for Mexican-production. Mr. ChamaSrour says that having a plant in Mexico three years from now could be “interesting”, considering factors like the cost of labour, logistics and expertise of the whole supply network in the country. Jaguar Land Rover announced its first wholly-owned manufacturing plant outside the UK in 2013 and started its construction in December 2014. If Mexico plant is a yes, it will be the company’s second wholly-owned plant outside homeland.

Many automakers including those offering luxury cars too, are knocking the doors of Mexico for cutting down production and supply costs. The companies are benefiting from experienced labour at a low wage-rate and Free Trade Agreements which leads to cheaper exports. The reason why Mexico is a highly preferred country for global automobile production is that it has 10 free trade agreements with 45 countries-counting EU members separately, and other trade deals in Latin America and the Asia Pacific. The North American Free Trade Agreement is also a big incentive for producing volume cars here and exporting, remarkably at lower costs.

[Source: Bloomberg]

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