JLR confirms West Midlands plant closure
MANAGEMENT at Jaguar Land Rover today ruled out speculation that one of its West Midland plants could be set for a reprieve.
Commenting on media speculation that JLR was having second thoughts about closing either the Castle Bromwich or Lode Lane plants, Carl-Peter Forster, group chief executive of parent company Tata Motors, said the stories were based on rumour and there were no plans for a reprieve.
In a short statement he said: “I can confirm that this speculation is based on rumour and that these rumours are untrue and serve only to create confusion.”
Tata announced in September last year it had completed a new business strategy aimed at increasing JLR’s global competitiveness, growing volumes, sustaining profitability and responding to the challenges of climate change.
“One of the measures outlined in the plan was the consolidation of Jaguar Land Rover’s manufacturing facilities from three plants to two, with only one of either the Castle Bromwich or Solihull plants being retained and receiving investment for new generations of Jaguar and Land Rover vehicles,” added Mr Forster, who was not in post when the strategy was devised.
He continued: “Since my appointment as group CEO of Tata Motors, I have reviewed Jaguar Land Rover’s business strategy and this consolidation, which will improve both efficiency and cost and align manufacturing capability with product plans and future volume growth, remains in Jaguar Land Rover’s plans. There has been no change in strategy.”
The company has been undertaking a study that examines which West Midlands plant will be retained. The result of this study is expected to be announced later this year.
The transition from two plants to one is likely to take place through the middle of the current decade.
The brands, especially Land Rover are enjoying something of a recovery. Sales of the 4x4s reached near-record levels last month and Jaguar is hoping that its new luxury XJ saloon, which goes on sale soon, will give its performance new impetus.
