Niyamath Parveez

The car industry in the United Kingdom was one of the most prestigious throughout the nation’s most recent history. Not only in terms of jobs and production levels but for prestige and pride, the UK car manufacturers played a massive role in employing thousands of British citizens and ensuring demand for UK products all around the world. Thankfully the days of Britain’s evil Empire is long over, the days of UK rape and pillage is long dead but the car manufacturing sector never brought shame on the great nation unlike the attitude to slavery and race which used to permeate in the upper echelons of UK nobility and standing.

However, the UK motor industry may be about to go the same way as other former traditions and with the current economic situation being what it is, this may be a hammer blow. Even when the world economy was in better shape, global market forces was causing a great withdrawal from UK based manufacturing plants and sources but the ability to outsource labor and production has placed an even deeper pressure on these once proud industries. There are genuine concerns that the UK is turning into a service based island and these fears may be coming close to fruition.

One of the best loved car manufacturers in Britain and the United Kingdom was Jaguar, the company’s logo and main models being synonymous with class and style. Even now, the Jaguar logo instantly transports many people to the swinging 60s when Britain and London ruled the world bringing style and new ideas to the planet. This has long gone and Jaguar is no longer the symbol of virility that it once was. This can be shown in the current debate and confusion over Jaguar in the United Kingdom and where they may be going to next.

A recent announcement that Jaguar intended to close down one of their UK plants and move to India has undoubtedly caused consternation and up to 20 local MP’s have rallied to the cause and promised to take the argument to plant and company bosses. In the current economic climate, it is easy to see why the appeal of Indian outsourcing shines so brightly for Jaguar. Lower labor costs, with no real drop in quality are an unbelievable opportunity for any firm to take and there is no way that any competitor in Jaguar’s position would turn down this chance.

This therefore places Jaguar in a difficult position in that it has to seriously consider this outsourcing option in order to remain in control of their income and profits.

Further complications in this situation have arisen due to the integration between Jaguar and Land Rover, creating the JLR brand, which of course brought together two entities with their own production lines, HR staffing and so many other systems. This has allowed some merging of resources which should have seen the integrated company obtain a measure of benefit but given the current economic climate, the opportunity to make genuine savings are always available.