An automotive expert at Coventry University said that in spite
of recent speculation, Jaguar Land Rover will be closing one of its
plants in 2015 but at this stage, it is still not certain which
one.
Professor David Bailey from Coventry University's Business
School said: "One of the measures outlined in Tata's business
plan last year was the consolidation of JLR's manufacturing
facilities from three plants to two, with only one of either the
Castle Bromwich or Solihull plants being retained. I expect the
announcement as to which one will be saved will probably be made
after the General Election.
"In theory JLR could actually shoe-horn all their
production through a slightly enlarged Halewood, which would be a
huge blow for the West Midlands but I am glad that they are looking
to consolidate output in the West Midlands on one site and cut
costs by having one paint shop rather than two.
"In terms of a plant closure, I don't know which way things will
go. Solihull is a large plant with plenty of scope for expansion.
It has a relatively new paint shop and up-to-date multiple forming
press. But on the other hand, the firm could easily shift more Land
Rover production to the big Halewood plant and focus on high-tech
aluminium construction at Castle Bromwich.
"Further down the line I can see JLR looking to produce in China
given the rapid growth of sales there and the emergence of a middle
class that will look to buy premium cars like Jaguars and Range
Rovers.
"The recent crisis in the industry has meant that many car
firms, including JLR, have had to rapidly re-draw their plans.
However, some things haven't changed: JLR currently has one car
plant too many and far too many separate platforms.
"We need to think more creatively about how to build and sustain
manufacturing capacity. If we want more manufacturing, could we
look at using Castle Bromwich or Lode Lane for something else?
"For example Tata have talked about bringing electric Nano car
production to Europe. What better place than the West Midlands
given the supply chain expertise here and given their considerable
investment in R&D in the region?
"That would mean the government taking a more interventionist
line to persuade Tata of the benefits of producing in the UK. If
the government can make a strong case to bring it to the UK and
look to use an un-needed JLR plant it would help tie the firm into
local competencies like those in the region's Niche Vehicle
Network."