Times are good at Jaguar Land Rover; so good in fact, that the company has announced a partnership with manufacturing and engineering specialist Magna Steyer to outsource production of future vehicles at its factory in Graz, Austria. JLR has successfully doubled sales in the last five years, to over 462,000 units, and its three factories in England are approaching capacity. New factories in Brazil and China will be coming online soon as well, but JLR is projecting the need for even more production capacity.
“The U.K. remains at the center of our design, engineering and manufacturing capabilities. Partnerships such as this will complement our U.K. operations and engineering,” says JLR CEO Dr. Ralf Speth. “Today marks another step towards building our global footprint. This agreement will allow us to expand our award-winning model range as customers around the world demand ever-more innovative vehicles from Jaguar Land Rover.”
JLR hasn’t announced which model(s) would be built in Austria, but if the agreement is similar to the ones Magna Steyer has with other companies, it likely means one or two models will be exclusively outsourced. For instance, every Mini Countryman, Mini Paceman and Peugeot RCZ on the road was constructed at Magna Steyer’s facility. Additionally, the company has built every Mercedes-Benz G-Class since its introduction in 1979. In short, it’s a fairly common practice within the industry.
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