Like much of the British car industry, the uncertainty surrounding Brexit negotiations is pushing companies to invest overseas rather than expand production facilities in the country.
On Friday, Britain’s Jaguar Land Rover picked China for its first overseas engine plant saying it plans on building a global model outside Britain for the first time in its history.
The company jointly operates a plant in China as part of a partnership with Chery. The new plant is part of a $1.6 billion investment JLR will be making with the Chinese automaker.
The new facility will make JLR’s new Ingenium 2.0-litre four-cylinder petrol engine.
Tata Motors owned JLR is rapidly ramping up its production levels outside Britain to meet growing consumer demand. In 2015, it built a major new plant in Slovakia. Earlier this month, JRL disclosed it would be building its new E-PACE compact SUV in Austria and China, its first car made for global sale outside Britain.
Like much of the British car industry, the company is worried on Brexit’s impact on its exports, which could potentially face lengthy customs delays and face heightened tariff of upto 10%, thereby jeopardising the viability of production in the country.