Jaguar Land Rover May Choose Not to Produce Vehicles in US
Company Looks Like it Favors Austria, Turkey Instead
In order to boost production, Jaguar Land Rover (JLR) is looking to add manufacturing facilities, but those facilities may not be on U.S. soil, as previously predicted. Although South Carolina and Georgia were both rumored to have been courting the English company for a manufacturing facility, new reports suggest that JLR may prefer a facility slightly closer to home.
According to Automotive News, lower-cost alternatives in Turkey and Austria are the current frontrunners for a new JLR plant, which would join JLR’s existing factories in the United Kingdom and China and a planned facility in Brazil. Turkey and Austria are no strangers to automotive development, as many of Ford’s global models (including the previous-generation Transit Connect van) are built in Turkey, and Austria has been the production home of several premium vehicles, including the Mercedes-Benz G-Class, Aston Martin Rapide, and BMW X3 (before most X-model production was moved to Greer, South Carolina).
Although JLR hasn’t made an official decision about where the company will establish new plants, it doesn’t make much sense to us avoid the U.S., which has generally been a fertile market for Land Rovers and Range Rovers. Building vehicles here would reduce importation costs all over North America, including cities like New York, Montreal, Toronto, and Salt Lake City, where JLR SUVs sell like hotcakes. Speaking to Automotive News, a company representative said that manufacturing opportunities would primarily be judged based on customer demand and growth potential, which makes a U.S. factory sound ideal to us.
Standing in the way of a North American facility are concerns over labor disputes. JLR’s competition from Volkswagen and Mercedes-Benz has run into small labor flare-ups in their U.S. factories, although generally, those disputes have resolved themselves amicably. Time will tell, as usual.
Source: Automotive News