The feasibility study underway with the Slovakian Government will explore plans for a factory with an installed capacity of up to 300,000 vehicles over the next decade.
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The move marks the next step in Jaguar Land Rover’s strategy to become more competitive globally, and challenge the likes of BMW, Audi and Mercedes in markets around the world.
Plans have been submitted to South Staffordshire Council for a further factory on the site, of around 900,000 sq ft, although JLR is now being tight-lipped about what will be made there. It remains at the centre of Jaguar Land Rover’s design, engineering and manufacturing capabilities.
Professor David Bailey, an auto industry expert at Aston University, said that the decision to pick Slovakia could be a hedge against “Brexit” – the UK leaving the EU – and fluctuations in exchange rates in the single currency.
‘The expansion of our business globally is essential to support its long-term, resilient growth, ‘ explains Dr Ralf Speth, Chief Executive Officer at JLR.
JLR will invest about GBP 1 billion in the new plant, which will have a capacity of 300,000 cars per year, the FT reports.
Slovakia has already attracted other carmakers. The new plant will complement the company’s existing facilities in the United Kingdom, China, India and the one under construction in Brazil, he added.
The scale of the planned output meant JLR would likely build more than one model, the head of production at consulting firm LMC Automotive Justin Cox said.
Jaguar Land Rover (JLR) has struck a deal with the Slovak government to build cars in eastern Europe from 2018.
A final decision on building the plant is expected later this year after JLR conducts a feasibility study with the Slovakian government. The location has been selected to allow it to expand production of its aluminium-bodied models – including an all-new Land Rover Defender.
“With its established premium automotive industry, Slovakia is an attractive potential development opportunity for us”. It would provide a boost to our country’s wider industrial strategy as well as benefitting the European Union as a whole.
“We look forward to working closely with Jaguar Land Rover over the coming months to progress the negotiations”.
JLR last October opened its first vehicle plant in China, and it is scheduled to open a new manufacturing plant in Brazil next year.
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Poland’s Deputy Prime Minister Janusz Piechocinski said Slovakia had offered high state subsidies which it would not match.
