Jaguar C-X17 right side

JLR mulling production in Austria or Turkey – Report

February 21, 2015

Jaguar Land Rover reportedly is eyeing at new plant in Austria or Turkey. Previous reports suggested that the company was considering opening a plant in the US but it probably wasn’t a feasible location. The new report says that the British luxury automaker is considering lower factory development cost locations in Turkey and Austria. The company is not considering expanding in its homeland where it has three factories already, due to high wage costs and the recent pay disputes with trade unions, as per the report.

The report says that the automakers’ first preference is Europe, with Turkey and Austria in the running, basically, countries where the costs are much lower and there is no risk of negatively affecting trade union influence. Final decision has not been made yet as the company is still in the evaluation stage.

The company opened a new plant in China with Chery Automobile in October 2014 which has an annual production capacity of 130,000 vehicles. Three models are planned to go under production here by 2016, which includes the upcoming entry-level Jaguar XE sedan.

The company’s first wholly-owned manufacturing plant outside the UK, in Brazil, is currently under construction. The production in this plant will commence in 2016 with the Land Rover Discovery Sport being the first vehicle to roll-off the assembly line. This plant will have an annual production capacity of 24,000 vehicles.

Like the China and Brazil plants which will allow for cost-effective production in the long-run, the third international plant is also likely to be the one where both development and operation costs are relatively lower than the UK.

Jaguar Land Rover’s German rival BMW also has a manufacturing facility in Austria. Additionally, Hungary could also be an equally strong contender, where German rivals Audi and Mercedes-Benz also take advantage of manufacturing for global operations.

Source: Automotive News Europe

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