Land Rover Considering Mexico Assembly Plant

Land Rover Considering Mexico Assembly Plant
Land Rover Considering Mexico Assembly Plant

Jaguar Land Rover has been expanding its production out of Britain and into overseas markets, Bloomberg reported on Tuesday.

The British automaker is considering spending more than half a billion dollars to build a new assembly plant in northern Mexico.

Since the Range Rover Sport and Evoque models are two of the company's top sellers in the US, they would reportedly be the most likely to be manufactured at the Mexican plant, with Jaguars probably following suit.

The automaker was previously said to be leaning towards a location in Texas, and while it could conceivably proceed with plans for both, it would be more likely to go with Mexico to keep costs down.

State and local authorities below the Mason-Dixon line have been soliciting the business with various incentives, but lower labor costs South of the Border could prove more attractive to JLR and its parent company Tata.

It wouldn't be the first, after all. Over the past month alone, General Motors committed to building the next Chevy Cruze in Mexico, Toyota did the same with the Corolla, Hyundai was reported to be considering a similar step, and Ford announced two new plants in the country amounting to a $2.5-billion investment.

Luxury automakers like Audi, BMW and Mercedes have also been delving into Mexican production as well, blazing a path that JLR could potentially follow.

The British automaker recently opened a plant in China and another in Brazil, while investing in additional facilities in the UK as well. The Chinese factory has been working on a 24-hour schedule and continues to struggle to meet the growing demand in mainland China.