JLR looks to the East
Dr Ralph Speth – Look to emerging eastern markets or fail
Jaguar Land Rover (JLR) has said emerging markets in the East will decide the future winners and the losers in the automotive industry and that manufacturers need to expand their global footprint in China and India to guard against failure.
The advice came during at a recent Institution of Engineering and Technology lecture at the University of Warwick called Made in Britain – Premium Automotive Manufacturing for Global Market.
Dr Ralph Speth, chief executive officer at Jaguar Land Rover, said: “Those that are left will not be able to rely on Europe alone, with its higher infrastructure costs and labour cost imbalance.”
That came with a warning that the future of the automotive industry would be “survival of the fittest.”
He said that this could only be done though with real and practical support from the UK government - which needs to go beyond the cuts in corporation tax announced in the recent budget. It needs to create the right environment for investment, innovation and focus on bridging the research and development gap between academia and business.
He concluded that although the automotive industry is a bit of a “risky environment” at present, as long as the risks are adequately prepared for, it’s also “a world of huge opportunity.”
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