Why will JLR build a plant in Slovakia?
- The JLR group (Jaguar Land Rover), a subsidiary of Indian group Tata Motors, has signed an agreement with Slovakia on the implementation of a new assembly plant in the country. Jaguar Land Rover had already signed in August 2015 a letter of intent with the Slovak Government for the construction of a new production site in Nitra. Why would this premium manufacturer implant itself in Slovakia, when it is clearly associated as a British product?
- First of all, let us recall that the JLR group currently has three factories in Britain (Solihull, Halewood and Castle Bromwich) with a total capacity of 490 000 vehicles per year. However, 2015 ended on a volume of 495 000 vehicles produced in all three factories. The JLR group needs to open additional capacities, especially because the manufacturer will launch a new Discovery in 2016 and above all a new Defender in 2018.
- The Land Rover Defender is currently finishing its career after 68 years of production and two million copies produced. The future Defender should become a substitute to a compact SUV, a competitor to the Jeep Renegade that is leading on a growing segment. To be profitable, the future compact model by JLR will be marketed a reasonable price which is why it should be manufactured in a country with lower labor costs than in England, and in these circumstances the selection of Slovakia is a wise choice . The ability of the future Nitra plant could be of 200 000 vehicles a year.
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