Jaguar Land Rover (JLR) is said to be now sourcing around 50% of the components by value its requires from locations in the United Kingdom, reports The Times. Ian Harnett, director of purchasing at JLR told the Society of Motor Manufacturers and Traders' (SMMT) annual conference that it was able to attract component suppliers to the UK thanks to its promise of its annual production expected to reach over 400,000 units per annum (upa). Harnett added that the company paid a 10% premium for supplying components from Europe, and that this level rises when deliveries come from further afield.
Significance: The decision by component suppliers to invest in UK production underlines the confidence in JLR's plans to expand its range and output. This goes against an earlier trend to shift some component production outside the UK to lower production cost markets in Eastern Europe and further afield. Among those supplying components from UK operations are BorgWarner, which is producing turbochargers in Bradford (United Kingdom); seating manufacturers Johnson Controls and Lear that have moved into larger sites in Halewood (United Kingdom) and Coleshill (United Kingdom) respectively; Gestamp which has shifted component stamping from the US to Llanelli (United Kingdom); and Tenneco which has doubled the size of its site in Tredegar (United Kingdom). IHS Automotive anticipates that JLR's production in the country will continue to rise towards the end of the decade, and having reached almost 430,000 units is set to hit around 595,000 units by 2018 as it continues to broaden its portfolio of vehicles to include a new mid-size Range Rover-branded product and new compact sedan and crossover for Jaguar.
