Graeme Roberts

THE WEEK THAT WAS: December, and the news is chilly

By | 14 December 2012

If memory serves, about two days ago, our 'slide show' at the top of the home page had four bad-news, job-loss-related stories out of the seven we rotate. Grim.

It started on Monday when GM Europe, having talked it through with unions, government and workers, finally bowed to the inevitable and announced the end of car assembly in Bochum, Germany, in 2016 though some component production and warehousing (there are two separate facilities in the Ruhr city) 'may' remain.

The axe has been hanging over the plant for a long time and we have grouped our coverage back to early 2011 here.

Could there be more bad news to come for The General in Europe? One analyst, as recently as last month, thinks so.

Even good news rattled some cages. Tata Motors' Jaguar Land Rover announced it was exploring options in Saudi Arabia, a prime luxury car and 4WD market, that might involve both building vehicles and sourcing their aluminium parts from a planned local smelter.

That, understandably, set off JLR's main UK union which wants a word with Tata over the future of the five British plants - JLR is already assembling Freelanders in an expanded Tata plant in India and working on a full manufacturing joint venture in China with local partner Chery. And that includes making engines from scratch.

Opinion over JLR strategy seems divided. I've seen comment suggesting that, long-term, the big spends will only be made overseas and that UK manufacturing could end, or be scaled down, when major plant investments are required here. Yet JLR is right now spending a few mill on a new English engine plant to end dependence on former owner Ford while Halewood is on three shifts for the first time ever to churn out enough Evoques and Freelanders to meet demand.

A different view published after the Saudi announcement suggested JLR expansion abroad can only be good for the home team - one new HQ job for every three abroad. After all, how many new people will be needed to train the Saudi factory workforce to make cars and maintain the machinery? And if expansion overseas (and planned new models like a rival for the BMW 3 series) grow sales overall, the policy of building where the cars are sold is a proven winner for the likes of BMW, Mercedes and Audi.

We also learned that the assets of bust A123 Systems have been snatched by the American unit of a Chinese company (from the jaws of Johnson Controls) and, back to JPR for a moment, a planned supercar has been given the chop.

Fiat is also chopping - 1,500 jobs - and even more posts - another 1,500 - are going, the automaker hopes by "natural attrition", at PSA.

There was, though, some good news. Tesla is setting up a distribution and 'final assembly' centre in the Netherlands though it's only 50 jobsLear's setting up a seat plant near JLR in England, and BMW, VW and GM/SAIC each published sales reports for November and/or 2012 to date that'll make execs at some rival automakers weep.

Have a nice weekend.

Graeme Roberts, Deputy Editor, just-auto.com

Sectors: Emerging markets, Vehicle manufacturers, Vehicle manufacturing

Companies: Jaguar, Tata, Chery, GM, BMW, Land Rover, Ford, Fiat, PSA, Mercedes, Audi, Tesla, Johnson Controls, Lear, VW

View next/previous articles

Currently reading -

THE WEEK THAT WAS: December, and the news is chilly

There are currently no comments on this article

Be the first to comment on this article

Related company research

Jaguar Land Rover: Providing remarkable growth throughout the economic downturn

Jaguar Land Rover has proved itself to be a strong and stable business in spite of the economic downturn, with good sales results in both developing and developed markets. Despite some difficult years and some changes in ownership the company has man...

Tata Motors Limited - SWOT Analysis

Tata Motors Limited - SWOT Analysis company profile is the essential source for top-level company data and information. Tata Motors Limited - SWOT Analysis examines the company’s key business structure and operations, history and products, and provid...

Tata Motors Limited - Mergers & Acquisitions (M&A), Partnerships & Alliances and Investment Report

Datamonitor's Company Mergers & Acquisitions (M&A), Partnerships & Alliances and Investments reports offer a comprehensive breakdown of the organic and inorganic growth activity undertaken by an organization to sustain its competitive advantage....

Related articles

THE WEEK THAT WAS: A little bit of niggle

I wouldn't have thought that, with the current state of play in the European auto industry, there'd be too much niggle in the union ranks. But we've reported on a bit this week.

US: BorgWarner to engineer and make JLR turbochargers in England

BorgWarner will provide British engineered and made turbochargers for Jaguar Land Rover's (JLR's) new four-cylinder petrol and diesel engines, scheduled to launch in 2015.

INDIA: Jaguar Land Rover April sales rise 15%

Tata Motors said Jaguar Land Rover sales in April 2013 rose 15% year on year to 28,874 units - 5,334 Jaguar and 23,540 Land Rover.

Read further items in this columns

The Week That Was

Deputy/news editor Graeme Roberts' Friday wrap on the important automotive news from the week just ending.

Welcome to the home of automotive information, insight & intelligence

Not a member? Join here

Decrease font sizeDecrease font sizeDecrease font size Increase font sizeIncrease font sizeIncrease font size Comment on this article Email this to a friend Print this page