One Jaguar Land Rover site will still be closed, says Carl-Peter Forster
28 May 2010

Jaguar Land Rover’s boss has reiterated the firm’s intention to close one of its UK manufacturing bases, despite speculation that the recent return to profitability could keep all three of the factories open.

Daily newspapers have claimed that JLR has decided to reverse its decision to close either Solihull or Castle Bromwich, persuaded by a pre-tax profit of £32m for the year to March after huge losses in 2009.

But speaking to Autocar this morning, Tata Motors CEO Carl-Peter Forster stated that JLR still plans to close either of the factories by the middle of this decade. "The previous management made that decision [to close one of the plants]; we see no reason to change it," he said.

"It’s simple: one large plant is considerably more efficient than two small ones," he added. "Our intention is to provide jobs for the existing workforce but I can’t count on it."

Forster, who was appointed in February, is currently reviewing all of Jaguar Land Rover’s business, manufacturing and product lines. He stated that he will choose which of the two plants to close only when that process is concluded.

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30 May 2010

[quote Autocar]Jaguar Land Rover’s boss has reiterated the firm’s intention to close one of its UK manufacturing bases, despite speculation that the recent return to profitability could keep all three of the factories open.[/quote]What with the pasty PM doing away with chauffeur driven Jaguars for his cabinet members, (they must use chauffeur driven public transport) the last vestige of "Britishness" is kicked into the long grass.

Jaguar is no longer a company dedicated to wholehearted UK manufacturing. If it can close one UK plant it can in time and when it suits close them all. Now it is more accurate to refer to JLD as an internationally based company with roots once upon a time in England.

31 May 2010

I hope there's a humongous penalty handed out for putting thousands of employees out of work and also the related parts suppliers.

Peter Cavellini.

31 May 2010

Why? Why should any business chose to manufacture its products in britain at a loss when it can do so elsewhere and make money.

It's a no - brainer, this type of industry just isn't viable here any more

31 May 2010

The sad thing is that a 100+-years old industry has never weened itself off government (taxpayer!) handouts, consequently it will go where the grants/tax-breaks/subsidies are largest.

31 May 2010

[quote rodenal]

It's a no - brainer, this type of industry just isn't viable here any more

[/quote]

Which begs the question why car manufacturing industry in some other European countries, e.g. German, France and Italy, is still viable? And while we are at it, how come the Japanese can sill make cars in the UK viably (well, for the most part anyway)?

31 May 2010

I have no idea, perhaps its due to the number of plants they have that overheads can be split between, maybe they employ cheaper labour who work more efficiently, don't take a fag break every hour and don't run to unions every time they dont get a payrise in line with what they feel they 'should' regardless of the state of the company ( see ba). Don't get me wrong I dont want British industry to disappear, far from it, I work in an industry that is very much British and could disappear at any time, but I recognise that it has to make money or the plug will be pulled. I don't see why Jaguar or any body else should act differently.

1 June 2010

So don't you think the government should be doing something about this?, inderectly it affects us all,as a part of the recovery of British industries in this recession this problem should be addressed, future generationd depend on fixes right now not this ho hum attitude some of us seem to have or if you can make it cheaper somewhere else then it's our fault kind of attitude , support your country, don't run it down.

Peter Cavellini.

1 June 2010

[quote Peter Cavellini]don't you think the government should be doing something about this?[/quote]Hi Peter. You address your question to another, but did I not hear PM Cameron say he wants to direct the British economy away from an unhealthy reliance on the financial industries, (he's not kidding) and back to manufacturing?

1 June 2010

I don't think they should do a thing about it tbh. The only way anything can recover is to let the failures fail and wait for something else to take its place. Why flog a dead horse? In the long term it won't help, people will find other jobs and retrain it happens all the time all over the world.

1 June 2010

I must admit that's the first time I've heard someone say that one big factory is "considerably more efficient" than two smaller ones. For one thing it doesn't seem to reflect the fact that the Jaguars built at Castle Bromwich and the Land Rovers built at Solihull require substantially different production processes, which will likely mean that whatever factory is going to be used to build both of them is going to require extensive (and expensive) modification. That isn't a particularly efficient use of resources. Also most companies I know of tend to spread their efforts across a variety of sites, for the simple reason that it's easier to get a number of smaller factories working efficiently than it is to get one large one reaching the same levels. The Nissan factory in Sunderland is the exception rather than the rule in this regard. If centralisation really makes processes more efficient, then with respect it makes the business case behind another factory in China somewhat flimsy. I'd be quite suspicious of the motivations behind this move, frankly.

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