Who would be stupid enough to buy a brand-new “CUV” and then drive it across a four-foot-deep stream? Surely, dear readers, you already know the answer to that. My Freelander was actually a capable little fellow off-road despite being fundamentally a jacked-up 1994 Civic with a creeper first gear.
More importantly, who would be stupid enough to believe that Tata would retain all Jaguar and Land Rover production in Great Britain, when a limitless supply of cheap labor is just a continent away?
As reported yesterday, Land Rover will be building the Freelander 2 at a new plant in Pune, India. Consider this a toe, er, wheel dipped in the waters; if quality doesn’t suffer too badly (and, really, how much worse could it get?) it’s a certainty that the majority of JLR products will eventually be assembled in the subcontinent. It’s possible that Tata would retain a single showcase factory in the United Kingdom to provide a pinch of authenticity to the very most expensive Jags and Rovers, but if the company expects to ever recover its not inconsiderable “investment” in these brands, it will be necessary to squeeze every last dime of profit from the lineup. Indian assembly is just the next logical step in that squeeze.
From your humble author’s perspective, however, the most interesting part of this whole thing will be how JLR spins it to the American media and consumer base. Will they proudly disclose the Freelander’s Indian heritage, or will they join Kenneth Cole, Tommy Hilfiger, Ralph Lauren, and countless other “luxury” brands by whitewashing a thin layer of pseudo-European snobbery onto a product made in Asia by race-to-the-bottom methods of labor and component sourcing? Hint: don’t bet on the former.
I don’t know…JLR only decided not that long ago to keep all three of it’s UK factories open instead of downscaling to two.
I think most of their products will continue to be build in the UK and only production of entry level models will be moved to India (the Freelander and perhaps the upcoming smaller model below the XF). People who buy these vehicles are probably prepared to pay the extra couple K premium for built in the UK with great tradition snobbery.
They might even go as far as only selling the cars they build in India on the Asian market as some other ‘premium brands’ are doing (not necessarily for India and Asia).
With the right equipment, training and supervision, is there any reason that Indian workers would not be able to turn out a quality product; or at least a product with equal or higher quality than is being produced currently?
I don’t know. I think the Indians have a lot of work cut out for them if they want to keep up JLR’s reputation for legendary build quality and reliability.
Now you guys are just letting some pesky facts in the way of an oppertunity to moan about a traditional english brand moving production elsewhere.
It’s a real issue though; not in terms of build quality perhaps but definitely snoob value.
There’s a reason why the German brands still build the majority of their products (especially those brand defining iconic ones) in Germany and make a point of it to ensure people that when they start building cars (joint venture) in China those will not be sold on the European (and I guess US) market.
lulz
Having spent 5+ years working with the Land Rover brand in the areas of advertising and marketing communications, I think that if the build quality and value make sense for people intrigued by the brand then there is a possibility that a Land Rover built India could work as an entry level vehicle, even in the US. During my time working with Land Rover, our goal was to move the perception of their brand from one offering quirky yet capable products built in the U.K. to marque that was perceived as a brand that could rightfully claim to call the world its home. I think the sale to Tata and stories of production in markets other than the U.K. support that brand idea–if the product is done right as noted above. The danger for the LR brand is that getting the product right can be a big if. I do have experience with the troubles associated when a brand gets the product wrong, as I also worked on the US launch of the Jaguar X-type.
Hmm. IS this about cheap labor, or about getting around the 100% import duty in one of the two hottest auto markets?
LR should be owning India. Instead a CR-X is a luxury car.
Quality should improve when JLR production moves to India.
Jack, In November of 2010 JLR signed a contract with the union that represents their salaried workers that keeps all three UK plants open till at least 2020.
It’d be a shame if Castle Bromwich was shuttered. The plant was built to make Spitfires (the fighter plane, not the little Triumph).
“My Freelander was actually a capable little fellow off-road despite being fundamentally a jacked-up 1994 Civic with a creeper first gear.”
Your Freelander must have been special indeed since Rover Group based the Freelander on a heavily modified Austin Maestro platform, I know, I worked on it!
Another point is that Land-Rovers have, almost since the get-go in 1948 been at least assembled in many places around the world, Australia, New Zealand, South Africa, Israel, Pakistan, India etc. In fact the current Freelander is CKDs in India already.
Jack,
The clothing companies you mention are “virtual” companies: they own no physical assets other than an idea. They come up with the design, and outsource production to anywhere in the world that can meet their manufacturing standards and cost targets.
In a way, that’s not a bad way to produce a car. Not easy, as Fisker and Tesla are finding out. But if the infrastructure is there, why not produce a Porsche in Finland or a Mercedes in China?
Country of origin is still part of the charm of owning a Swiss timepiece, Allen Edmond shoes, or a Barbour jacket, but it would be wise to consider that a marketing consideration rather than a manufacturing one.
What a rubbish article! What TTAC doesn’t tell you is that they are building a large engine plant in the UK to feed the 3 UK assembly plants.
They also have’nt mentioned the 8 billion pounds TATA is spending on a massive expansion of JLR products. Oh and wait shock horror there is more TTAC ‘forgot’ to say not only is it planning an assembly plant in India, but it’s going to build one in China and possibly Brazil as well. But these plants are just making cars out of CKD kits to avoid massive import tax in those countries.
JLR needs the capactity it has in Europe because it’s planning to double the number of models it currently makes. So what it loses to India in production (at present less than 1000 units a year) it will make up in additional new cars.
Come on TTAC do your research. And instead of downbeat stories what about the one where JLR just announced profits of over 1 billion pounds for the last 12 months? Oops another TTAC ommision.
Tstag,
What makes you think that JLR’s decision to build the Freeloader in India is “downbeat”? Land Rover is an Indian company now and they are free to build cars in India.
The point of the story was very specific: During the purchase of JLR, more than one self-appointed expert claimed that they would never move to Asia for production. That is now clearly not the case. And as Ronnie points out, they are committed through 2020, although a cynic might respond that eight years is not an eternity in this business.
So Jack where does this fit in?
http://paultan.org/2011/05/27/jaguar-lr-to-build-four-cylinder-engine-plant-in-india/
Why would JLR build an engine plant in the UK and another in India if it was going to close assembly plants in the UK? This is actually the thing that kills your blog and should result in the sacking of all your journalistic mates who got the lift and shift plan wrong.
Also why reverse a decision to close a UK car factory?
Also why go on a massive recruitment drive in the UK?
Also do you not think that when JLR double the number of models they make they might actually want the capacity?
To be fair Jack the article you should write is ‘BMW, Merc, Audi look out, TATA are planning 40 new products’. Oops did you miss that too? There is actually a big story here, which is that JLR are spending 8 billion pounds over the next 5 years to go BMW hunting…