Jaguar Land Rover is considering opening a new production site in either Austria or Turkey as it bids to increase its capacity, according to a report by the Birmingham Post, citing highly placed company sources. The carmaker had been mulling to open a site in the southern part of the United States, but it executives are getting attracted by the lower-cost factory developments in Turkey and Austria.
The British group, now owned by Tata Motors, is trying to expand its production outside the United Kingdom, its traditional turf. According to the Birmingham Post, JLR is hesitant to expand its production beyond its three plants in the UK due to high wage costs as well as recent pay disputes with trade unions.
In October 2014, JLR opened a new site China in October and in 2016, the carmaker intends to start production in Brazil. A source even told the Birmingham Post that Europe could be “currently ahead of America." The carmaker sold 462,678 vehicles globally in 2014 and is aiming to top 500,000 this year.
According to JLR, it is working on ways to expand its production outside the UK, although it did not comment on possible locations for its new factory.
A JLR spokeswoman told Automotive News Europe that the carmaker will continue to evaluate opportunities to increase its production footprint, especially in markets with “growth potential and customer demand."