Jaguar Land Rover (JLR) is considering building a plant in Mexico, according to a Bloomberg report. The news outlet cites Jaguar director general Joseph ChamaSrour for Jaguar in Mexico as saying the country is a “very strong option” for JLR to invest in. “Three years from now it could be interesting to have a plant in North America, and Mexico would definitely be a very strong candidate because of the cost of labour, the logistics and the expertise of the whole supply network,” ChamaSrour said. The executive said that the production might include Land Rover’s Range Rover Evoque and Range Rover Sport, and did not rule out Jaguar brand production.
Significance: Announcements of new production investments in Mexico have been coming at a frantic pace of late, including Toyota’s announcement for USD1 billion and Ford’s engine and transmission investment. JLR’s interest in a US production site came to light in February and March, however does not seem yet to be final. According to the IHS Automotive production forecast, Mexico’s automotive production is scheduled to increase from 3.21 million units in 2014 to 5.14 million units in 2020, as automakers take advantage of a skilled, cost-effective workforce and Mexico’s 45 free-trade agreements.
