A Jaguar Land Rover Success Story

The recent news that some 800 jobs are to go at Honda’s plant in Swindon makes for depressing reading. This once vibrant Wiltshire town where just a few short years ago unemployment was almost non-existent has suffered more than most in the South of England. What’s worse is that it is not a lack of sales in the UK that is the problem but rather sales in the depressed region known as Europe. The Swindon plant is nowhere near capacity.

Yet not all is doom and gloom. The Jaguar Land Rover group is recording record profits and will actually be creating some 800 new jobs at it’s various factories in the UK. They plan to announce this at the Detroit Motor Show. It is the result of massive sales improvements in all the major markets of the world.

Following a rather shaky start when the Indian owned Tata Motors took over the brands from Ford, the company has gone from strength to strength. More than 1000 new personnel have already been added to the payroll bringing the total employed to 24,000 people.

To keep on top of the modern skills required JLR are beginning a scheme whereby an additional 150 staff members a year will be trained up to degree level, supplementing the usual graduate intake. Training will include software development and mechanical / electrical engineering. That is what you’d call commitment.

In the last couple of years sales have shot up exponentially and ambitious plans are in the pipeline. The target is to eventually be building 600,000 units per year. That’s got to be good for Britain. Further, JLR are spending £350milion on a new engine plant at Wolverhampton.

Some eighty percent of production is exported and last year the company entered into an agreement with the Chinese motor manufacturer Chery to build JLR vehicles in that country. In the next five years there are exciting developments afoot as some 40 new models are reported to be on the cards. There’s a new and highly anticipated Range Rover this year, soon to be followed by the replacements for the ageing Defender range.

On the Jaguar side there is, of course, the much anticipated sports car, the F-Type, expected around April this year and it is reported that a baby Jag and a SUV are to follow soon.

Following on from the depressing news from Swindon, it is good to see that not all the industry is suffering. It could be argued that it is newly affluent markets like China that make a difference to the prestige end of the car market but why there is this disparity in fortunes isn’t really clear. What is clear is the effect that the doldrums of Europe have on our home industries although Honda’s own UK MD has said quite clearly that as far as his company is concerned the EU is still the place to be for future investment.