It’s great news. Jaguar Land Rover (JLR) yesterday announced plans to double the size of its operations at its headquarters at Whitely in Coventry. The firm said that land purchased in Whitley means that it can expand its base there from 55 to nearly 120 acres.
The Whitley site is expected to be used for . Some 4,000 workers work at the base already, and it’s not clear how many new jobs could ultimately be created, but could run into hundreds if not thousands.
JLR’s Chief Executive Ralph Speth said the expansion would support the development of "ultra-low emission" vehicles.
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"Jaguar's heart has always been in Coventry and now its brain is going to be as well," Coventry council leader Ann Lucas quite rightly said yesterday on the news.
The council has been proactive in making the site as accessible and attractive as possible for JLR, and had invested heavily in local infrastructure to seal the deal. It was a far sighted move by the council, which sees the JLR investment as a ‘game changer’ for the city.
It’s certainly a huge vote of confidence in the city and wider region, with its strong design and engineering base and skills linked to local universities and a cluster of highly innovative research and development firms.
In fact, well over 90% of all research and development spend in the 海角视频 auto industry runs through a ‘golden arc’ that runs through MIRA, JLR, local universities, sport valley.
Only a handful of regions in Europe actually have the genuine capability to completely design, develop and build a whole car, including its powertrain. This region is one of them.
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The latest investment is essentially about developing much greener cars, including hybrids and electric vehicles. JLR, like other major manufacturers, has a huge challenge in getting greenhouse gas emissions down, especially in the context of tough new European regulations.
That means developing much lighter, fuel efficient cars. At the same time, the firm needs to scale up production globally. In five years’ time I expect it to be making a million cars. To do that it has to develop brand new products, hence the Whitley expansion.
Earlier this year, the firm said it would create 1,300 jobs to build its first sports utility vehicle at its Solihull plant. And the launch of the new XF week this means further investment in its Castle Bromwich plant in Birmingham. In all, the firm is thought to have created a remarkable 18,000 new jobs in the last five years, doubling its workforce.
News on the Whitley expansion is especially welcome given recent speculation on possible moves to start producing cars in Central and Eastern Europe, with production in Austria possible within two years via contact manufacturer Magna Steyr.
Such a move may well happen, but it’s important to stress that JLR is nevertheless investing very heavily in the 海角视频, both in production and research and development.
And this region will be the heart of its global operations. That’s a fantastic achievement for the region and the company. Only six years ago the firm was struggling in the depths of the deepest recession in decades. all over the world want to own and drive. And those cars are being designed and developed right here.
* Professor David Bailey works at the Aston Business School