Jaguar and Land Rover are eyeing the possibility of producing their trademark cars outside of their Midlands base. As sales are soaring in Asia and China is accounting for more than 10pc of sale in the last fiscal year, the management of JLR and the parent company Tata Motors are thinking of creating a joint venture in China.
Saving on the Bottom Line
This venture would allow them to save on import costs on vehicles that are sold in the area. Ralf Speth, the chief executive, said at the Frankfurt Motor Show on Tuesday that they are in negotiations but that this isn’t something that you can do quickly.
Despite economic difficulties around the world, JLR has seen incredible growth this year. Sales are ahead of last year’s sales; they have hired another 3000 staff this year; and they are building a new plant in the UK.
Ratan Tata, the chairman of Tata Sons and the one who bought JLR said,
“The credit for the turnaround of Jaguar Land Rover goes to the management team and workforce of the company. No single person can or should take credit for the improvement in the company’s operations.”
Company Upturn
He continued by saying, “The upturn in the company’s performance commenced two years ago. The improvement reflects the changed market environment, the success of new products already in the pipeline and the enthusiasm and support of the management team and workforce.”