Jaguar Land Rover set to go down Mexico way?
VEHICLE manufacturer Jaguar Land Rover is believed to be considering making its first foray into Central America with the construction of a new plant in Mexico.
Reports from India – home of JLR parent Tata Motors – together with various industry websites, claim the company is looking to take advantage of low-cost production and free trade agreements.
News agency Reuters said Mexico was a “very strong option” for JLR and claimed the company could be ready to invest around $500m (£329m).
The agency quoted Joseph ChamaSrour, Jaguar director general for the brand in Mexico, as saying: “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.”
The move is not without precedent; JLR is already developing a new plant in Brazil and sees the Americas as ripe for growth. There is also strong speculation the company could be about to expand its global footprint still further by developing a new plant within the United States.
The company is not without ambition to become a global automotive player, having already opened a new factory in China as part of a joint venture agreement with domestic manufacturer Chery.
Reuters said JLR would “read a well-worn path to Mexico”; following in the tracks of rival producer BMW, which last year committed $1bn to a new operation capable of producing 150,000 cars a year by 2019.
Other rivals Audi and Mercedes Benz also have operations in the country and JLR is keen to be seen as a manufacturer of equal standing with these firms.
With new models such as the Jaguar XE now in full production, with its crossover cousin the F-Pace set to follow next year – to say nothing of the Discovery and Range Rover products – the company is not short of offerings to the Mexican market.
It is not just in the premium sector where Mexico is set to benefit.
Toyota has said it intends to invest around $1bn in Mexico to begin producing Corollas in 2019. The venture marks the Japanese firm’s first new overseas plant since the start of the global financial crisis.
Reuters said vehicle manufacturers were flocking to Mexico in order to take advantage of a low-wage yet highly skilled labour force, while export access to the United States and other countries through the North American Free Trade Agreement also made the lure of the country very appealing.
The agency quoted s ChamaSrour as saying the Range Rover Vogue and Range Rover Sport were top sellers in the US and could possibly be produced at a new Mexican factory as it would be tied to the US market. ChamaSrour has also not ruled out Jaguars being produced at some point.
