The owner of Jaguar Land Rover (JLR) has vowed that quality and brand values will not be compromised by its overseas expansion plans – and vowed to support the business for decades.
Last week, JLR announced it will open a manufacturing plant in Brazil in a £240m investment, with the first cars expected to roll off the production line by 2016.
This will follow the opening of a joint venture investment worth £1.5bn in China, with Chinese carmaker Chery, due to open in 2015.
Although JLR has not revealed what models will be produced in China and Brazil, Halewood’s popular Range Rover Evoque, which has taken the global market by storm since its launch more than two years ago, will be an obvious contender.
Roger Maddison, chief car industry negotiator for Unite the Union, said he sees no threat to UK jobs from the two proposed international plants.
But concerns have been raised about what impact they could have on the renowned British design qualities of JLR models, and the supreme quality of manufacturing at a company that prides itself on the high standards of its three UK plants in the West Midlands and Knowsley’s Halewood.
However, in an interview at Tata’s global headquarters in Mumbai, Mr Mukund Govind Rajan allayed any fears of compromise on JLR's standards.
He is a member of Tata’s group executive council and also brand custodian and chief ethics officer for the global conglomerate.
He told the Liverpool Post: “In China, setting up shop, a lot has to do with local recruitment and the value of training.”
JLR recently completed a three- month training programme for China's “first joiners” who were tutored at Halewood in quality standards and will pass on their skills to the rest of the Chinese workforce.
Mr Rajan added: “We have terrific practices in the company and translating this to new facilities is not much of an issue.
“The brand will not undergo any changes in these markets. JLR brands will remain.
“Customers across the world have an affinity to JLR brands and the last thing we need to do as an owner is disrupt that relationship.
“We don’t want to create any kind of trouble for these brands.”
Mr Rajan said Tata had been delighted with the performance of JLR since it bought the group from Ford for £1.15bn and injected a further £1.5bn in 2009 to ensure its survival during one of the worst downturns in the automotive sector in decades.
And he reassured the UK workforce that Tata will be the custodian of JLR for decades to come.
“We have been delighted with the way the company and employees responded to the challenges at JLR,” he said.
“It is not about how do we save cash and cut back. It is about what do we do to build the business in the next 50 years. We don’t enter businesses easily, but when we do we are in it for the long term.
“We are not an aggressive, acquisitive entity, firing management and stripping assets and moving on. We build in the long term.”
When Tata bought JLR, it also acquired Corus Steel in the UK and Mr Rajan admitted that there was a perception among Indian commentators and market analysts that the JLR deal was the “dodgier” of the two, but he said: “On current form, JLR is turning out to be one of our outstanding successes.
“We work with the unions and the community and with JLR we have been very lucky and fortunate.
“There is a fair amount of satisfaction that a lot of growth has been seen and perhaps it has surprised the company, particularly the growth in China.
“But when we went in, this company had tradition and a legacy and a very interesting product pipeline and smart managers.
“We committed capital to ensure that pipeline was delivered and we needed leadership that was willing to give people the space to pursue their dreams.
“JLR meant a lot to the Tata group and they have a lot of time for the company and the new owners that inspired the managers.
“They knew we were watching and waiting for their success. It says a lot about the quality of the people we have there.”
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12 Dec 2013
Jaguar Land Rover parent says company is 'safe in our hands'
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29 Sept 2013
JLR invests £100M in new research centre
- Jaguar Land Rover confirms its commitment to research and development in the UK, with a multi-million pound investment in a new technology, innovation and education centre at the University of Warwick
- National Automotive Innovation Campus (NAIC) construction begins September 2014
The facility will open in 2016 and Jaguar Land Rover will double the size of its advanced research team
Jaguar Land Rover has unveiled details of its future plans for advanced research and development in the UK which will now be focused on a new cutting-edge technology, innovation and education centre in Warwick.
The National Automotive Innovation Campus (NAIC) is designed to create a large-scale collaborative research environment. It will bring academics from the UK’s leading universities together with researchers and engineers from Jaguar Land Rover and our supply chain, in a single, multi-purpose, state-of-the-art research facility.
Jaguar Land Rover is the lead partner in the project investing £50m, along with Tata Motors European Technical Centre (TMETC), WMG (Warwick Manufacturing Group ) and the UK Government’s Higher Education Funding Council England (HEFCE).
Construction of the nearly £100m NAIC is scheduled to begin in September 2014 at the University of Warwick. Around 1000 academics, researchers, technologists and engineers will work in the building, which will feature engineering workshops and laboratories, advanced powertrain facilities and the latest advanced design, visualisation and rapid prototyping technologies.
The development of the new facility, which will complement Jaguar Land Rover’s product creation centres in Gaydon and Whitley, will be co-ordinated by Dr Wolfgang Epple, Jaguar Land Rover’s Director of Research and Technology. In this new board-level role, Dr Epple is leading Jaguar Land Rover's innovation and advanced research initiatives and has been appointed a Honorary Fellow at WMG.
Dr. Wolfgang Epple, Director of Research and Technology, Jaguar Land Rover, said: “Investing in collaboration, innovation, research and education is vital if we want to be on a par with our international competitors. Our future sales success, the success of our global business – and the UK economy – lies in the engineering and innovation that will take place in NAIC.
“Creating a new national focus for automotive research and consolidating Jaguar Land Rover’s growing research and advanced engineering operations in one centre offers us huge potential. With a critical mass of research capability we will put the UK at the very centre of the global automotive industry – with the NAIC at its hub.”
The development of the NAIC project is the next stage in Jaguar Land Rover’s long-term research strategy and builds on the success Jaguar Land Rover has enjoyed as part of its long-standing relationship with WMG at the University of Warwick. Nearly 200 Jaguar Land Rover researchers and engineers are currently based at WMG, collaborating with university experts on a number of projects.
Jaguar Land Rover expects that it will more than double the size of its advanced research team to 500 people by the time the NAIC opens in 2016.
Antony Harper, Jaguar Land Rover’s Head of Research, said: “We will announce the details of the specific research projects on which our NAIC research team will collaborate in due course, but these will be long-term, multi-disciplinary challenges – such as electrification, smart & connected cars and Human Machine Interface – which will help us create some key new technologies that will deliver a low-carbon future.
“These collaborative research programmes will harness the best of UK engineering innovation, and with the extra capability the NAIC gives us, you can expect the number and range of new, fresh innovative ideas that we patent, and then take to production in the future, will increase significantly.”
As well as the skills and knowledge that will be developed within these research projects, NAIC will have a key role in developing the skills of school children and engineering students, who will be able to use NAIC’s laboratories and a dedicated engineering education facility.
Dr. Wolfgang Epple added: “Economic growth can only be sustained if we and our suppliers can find the right quality and quantity of skilled people. We need to ensure that we are inspiring people to consider engineering and encourage a passion for science, technology and maths from a young age.
“The NAIC will become a centre of training and skills to help ensure we have enough young people wanting to develop a career in engineering and manufacturing. NAIC will also play a key role in nurturing the next generation of engineers and technologists.”
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