16 July 2018_By Engineer at campuscad
Jaguar Land Rover has decided to move the Discovery vehicle production from Birmingham to Slovakia (central European country) because of low sells of diesel vehicles, Brexit (uncertainty of future) and taxes.
Brexit-A big reason to move outside Britain
Mr Speth stated few problems caused due to Brexit environment in the country.
- What kind of trade deal will be there if vehicles moves in and out between EU and UK.
- Custom duty checks will delay the deliveries and Just in time concept.
- JLR has big plans to invest almost £80 billion in coming 5 years, hence need to ensure the Brexit conditions.
- It will be difficult to outsource skilled manpower to the country under Brexit.
Automaker says, it will not move overnight due to heavy investment done on R & D in last year around £4.2 billion.
It will certainly affect the tones of jobs related to manufacturing and suppliers as well but it is necessary to be done for long term JLR manufacturing strategy, as per JLR statements.
Company also investing millions in Solihull (West midlands of England) where sports vehicles for Range Rover will be build..
More than 40,000 employees and 2,60,000 vendors will affect if JLR moved. JLR has two plants in Gaydon, Warwickshire & Whitley, Coventry.
JLR is currently owned by TATA (Indian Automaker) and as per company goal; they are probably going electric after 2020 for all new vehicles.
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