JLR looks to Turkey for new factory

Recent pay disputes with trade unions in the U.K. has directed car manufacturer Jaguar Land Rover (JLR) to look for a new factory in Turkey and Austria According to a story by the Birmingham Post, which is owned by British media giant Trinity Mirror Group that also owns papers like The Daily Mirror and The Sunday Mirror, Jaguar Land Rover (JLR) is targeting potential new factories in Turkey and Austria as a result of the failure they faced during U.K. pay talks with trade unions. The Midlands' most successful manufacturer, which has created thousands of jobs in Solihull and Castle Bromwich in recent years, is said to be favoring Europe over North America and the U.K. for further expansion. JLR is a British multinational car manufacturer based in Whitley, England, and the Indian company Tata Motors has owned it since 2008.

Reliable sources stated the luxury vehicle maker was now eyeing up lower cost factory developments in Turkey and Austria rather than North America, in spite of recent reports of plans for a U.S. factory. JLR bosses are believed to be willing to continue expanding the manufacturing operation as part of the company's determination to take on the likes of bigger rivals such as BMW and Volkswagen. However, the expansion plans are thought to have now switched to Continental Europe, partly because of lingering ill-feelings toward the unions over last fall's protracted pay negotiations.

Even though the source said that "nothing has been decided at this stage and it may take weeks before they come to a decision," it is potentially now more likely that they will look at Europe first. Costs are very high in the U.K. and they could go to places where they are much lower and where there is not the same union influence. In December, more than 77 percent of JLR Unite members voted in favor of a two-year pay deal, finally lifting the threat of industrial action after weeks of shop floor uncertainty. The ballot of the revised offer saw 9,759 workers vote in favor of the deal, with 2,766 against. But the settlement was only reached when JLR backed down over pensions after unions accused them of planning a 240 million pound hit on the pension fund to pay for the new deal.