Jaguar Land Rover Isn't Changing Its Plans Because of Brexit; Analyst Says Pain Lies Ahead

jaguar land rover isnt changing its plans because of brexit analyst says pain lies

Jaguar Land Rover’s brands are as British as crumpets and the Union Jack (ignore the fact that it’s owned by India’s Tata Motors), so concerns over Britain’s vote to leave the European Union should fall squarely on its tweed-covered shoulders.

The automaker is keeping a stiff upper lip, at least in public, with a spokesperson saying the company doesn’t plan to make changes to its strategy, Reuters reports.

A $1.34 billion assembly plant in Slovakia is going ahead as planned, said Jaguar Land Rover strategy director Adrian Hallmark, who called the Brexit a “short-term issue” during a news conference.

“Our commitment is to our existing operations in the UK, future operations in Europe of which we have already announced the Slovakia plant which will be coming on stream in just a few years,” Hallmark said.

The Slovakia plant’s location was picked from a diverse list of potential sites that included the U.S. and UK. Production could reach up to 150,000 vehicles per year after it opens in 2018.

One industry analyst, speaking with Bloomberg, said the short-term pain for the UK and EU will be severe. Ian Fletcher, analyst for IHS Automotive, told the publication that the Brexit vote could erase the sales of 2.8 million vehicles between now and 2018.

“The U.K. is, unsurprisingly, anticipated to bear the brunt of the impact,” Fletcher said. He predicts that the UK vehicle market will shrink from a previously estimated 3.2 million vehicles to just one million, according to IHS calculations. Expect declines for two years after that, Fletcher added.

According to the Society of Manufacturers and Traders, at last count, the $20 billion-plus British auto industry ships 80 percent of its vehicles overseas, with 60 percent of that total bound for countries in the EU.

[Image: Jaguar Land Rover]

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  • Stevenrogers Stevenrogers on Jun 30, 2016

    Jaguar should make some Supercar which is powerful to stand aside with all the present supercars and which is cheaper as price stays in a Million. This is how Jaguar will make his marks on the ground easily

  • Ricky Spanish Ricky Spanish on Jun 30, 2016

    Is this "The Truth About Cars" or "Undereducated Xenophobic Racists Spout Economic and Political Nonsense?"

    • VoGo VoGo on Jun 30, 2016

      Depends on the day of the week. -Monday: The Truth about Cars -Tuesday: Yay Ford! Day -Wednesday: Undereducated Xenophobic Racists Spout Economic and Political Nonsense Day -Thursday: Yay Ford Day, again -Friday: Anything Goes -Saturday: Midsize Diesel Pickup Debate -Sunday: "I hate on Tesla because change is scary" Day -Holidays: Bring back Mercury because I miss seeing Jill Wagner Day

  • DenverMike When was it ever a mystery? The Fairmont maybe, but only the 4-door "Futura" trim, that was distinctively upscale. The Citation and Volare didn't have competing trims, nor was there a base stripper Maxima at the time, if ever, crank windows, vinyl seats, 2-doors, etc. So it wasn't a "massacre", not even in spirit, just different market segments. It could be that the Maxima was intended to compete with those, but everything coming from Japan at the time had to take it up a notch, if not two.Thanks to the Japanese "voluntary" trade restriction, everything had extra options, if not hard loaded. The restriction limited how many vehicles were shipped, not what they retailed at. So Japanese automakers naturally raised the "price" (or stakes) without raising MSRP. What the dealers charged (gouged) was a different story.Realistically, the Maxima was going up against entry luxury sedans (except Cimarron lol), especially Euro/German, same as the Cressida. It definitely worked in Japanese automaker's favor, not to mention inspiring Lexus, Acura and Infiniti.
  • Ronnie Schreiber Hydrocarbon based fuels have become unreliable? More expensive at the moment but I haven't seen any lines gathering around gas stations lately, have you? I'm old enough to remember actual gasoline shortages in 1973 and 1979 (of course, since then there have been many recoverable oil deposits discovered around the world plus the introduction of fracking). Consumers Power is still supplying me with natural gas. I recently went camping and had no problem buying propane.Texas had grid problems last winter because they replaced fossil fueled power plants with wind and solar, which didn't work in the cold weather. That's the definition of unreliable.I'm an "all of the above" guy when it comes to energy: fossil fuels, hydro, wind (where it makes sense), nuclear (including funding for fusion research), and possibly solar.Environmental activists, it seems to me, have no interest in energy diversity. Based on what's happened in Sri Lanka and the push against agriculture in Europe and Canada, I think it's safe to say that some folks want most of us to live like medieval peasants to save the planet for their own private jets.
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  • Car65688392 Thankyou for your valuable information
  • MaintenanceCosts There's no mystery anymore about how the Japanese took over the prestige spot in the US mass market (especially on the west coast) when you realize that this thing was up against the likes of the Fairmont, Citation, and Volaré. A massacre.