Britain’s Jaguar Land Rover, the premium automaker owned by India’s Tata Motors, has announced that it signed a letter of intent to construct a new assembly facility in Slovakia.
This is another sign the carmaker is expanding its manufacturing base away from its UK home, with the company – owned by Tata Motors since 2008 – ready to embark on a feasibility study for a factory in Nitra, western Slovakia. Their plan is to start production in 2018 and hit an annual production output of as much as 300,000 units by 2025. According to a statement from the automaker, a final decision has not been made yet, but will not be delayed later than this year. Slovak Finance Minister Peter Kazimir welcomed the announcement, adding his country was helped by the fact it was a member of the eurozone, unlike other neighbors in the European Union. According to a trade union source that talked to Reuters earlier, JLR had been investigating as possible locations the Czech Republic, Hungary, Poland and Slovakia, though only the latter was a member of the euro zone. A ministry source also told Reuters that Slovakia was ready to give JLR the maximum incentives allowed under EU regulations.
The British luxury manufacturer also announced the new facility would play a pivotal role in lifting output of the automaker’s lightweight aluminum models it produces – with IHS Automotive principal analyst Ian Fletcher forecasting the plant would be used for the production of vehicles underpinned by the architecture of the new Jaguar XE sedan. That would include crossover from both the Jaguar and Land Rover brands that will be launched in the near future.
Via Automotive News Europe