Jaguar latest SUV, which enjoyed an action-packed world debut earlier today, will reportedly be the first of the larger Jaguar Land Rover (JLR) group’s products to be made outside of its home in the U.K.
Reuters reports that Jaguar plans to shift its manufacturing operations of the E-Pace SUV to China and Austria.
Jaguar announced that its three U.K. based (Castle Bromwich, Solihull, and Halewood) manufacturing plants were either full or at near capacity, but, given the current Brexit woes, can’t afford to be slapped with customs tariff and delays making further expansions within the UK risky.
In lieu, Jaguar plans to shift manufacturing operations of the E-Pace to Austrian contract manufacturer Magna Steyr, and to its plant in China which is shared with Chinese carmaker Chery.
In a company statement regarding the move, "It allows Jaguar Land Rover to offer its customers even more exciting new vehicles, to protect against currency fluctuations and to build a globally competitive business."
If the name Magna Steyr sounds familiar, it’s because the Austrian giant is also responsible for the production of various BMW and MINI models, such as the (G30) 5-Series PHEV. Magna will also be producing Jaguar’s first-ever battery electric vehicle, the I-Pace, slated to begin in early 2018.
Jaguar has however said that should certain economic conditions be met in the near future, it will produce its low-emissions vehicles in the U.K.