Tuesday, 28 April 2015

JLR heading for Mexico plant?

Could JaguarLandRover (JLR) be heading to build a vehicle assembly plant in Mexico?

A report in a Bloomberg points in the direction of Jaguar director general Joseph ChamaSrour who is responsible for Jaguar in Mexico.

He suggests the country is a “very strong option” for JLR for future investment.

“Three years from now it could be interesting to have a plant in North America, and Mexico would definitely be a very strong candidate because of the cost of labour, the logistics and the expertise of the whole supply network,” ChamaSrour said.

The executive added that the production might include Land Rover’s Range Rover Evoque and Range Rover Sport, and did not rule out Jaguar brand production.

Announcements of new production investments in Mexico have been coming at a frantic pace of late, including Toyota’s reveal of a US$1 billion spend and Ford’s engine and transmission investment.

JLR’s interest in a US production site came to light in February and March, however does not seem yet to be final. 

According to an IHS Automotive production forecast, Mexico’s automotive production is scheduled to increase from 3.21 million units in 2014 to 5.14 million units in 2020, as automakers take advantage of a skilled, cost-effective workforce and Mexico’s 45 free-trade agreements.


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