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UK car output falls 14% in March, may get worse with no-deal Brexit

LONDON — British car output fell for the 10th month in a row in March, hit by a slowdown in key foreign markets, and the sector stands to suffer a lot more if the country leaves the European Union without a deal, an industry body said on Tuesday. Output tumbled by an annual 14.4 percent to 126,195 cars in March, the Society of Motor Manufacturers and Traders said. Exports, which account for nearly four out of every five cars made in Britain, were down by 13.4 percent. The SMMT said analysis it had commissioned predicted output would fall this year to 1.36 million units from 1.52 million in 2018, assuming London can secure a transition deal with the EU. If Britain has to rely instead on World Trade Organization rules for its trade with the bloc, which include import tariffs, output is forecast to fall by around 30 percent to 1.07 million units in 2021, returning to mid-1980s levels, the SMMT said. The forecasts were produced for SMMT by AutoAnalysis, a consultancy. Prime Minister Theresa May has secured a delay to the Brexit deadline until Oct. 31, giving her more time to try to break an impasse in parliament over the terms of Britain's departure from the EU. Foreign minister Jeremy Hunt traveled to Japan earlier this month to try to persuade the Japanese government and Toyota, which has a big presence in Britain, that London was determined to avoid a no-deal Brexit. "Just a few years ago, industry was on track to produce 2 million cars by 2020 — a target now impossible with Britain's reputation as stable and attractive business environment undermined," SMMT chief executive Mike Hawes said. "All parties must find a compromise urgently so we can set about repairing the damage and diverting energy and investment to the technological challenges that will define the future of the global industry." (Reporting by William Schomberg, editing by David Milliken)

Jaguar Land Rover opens winter testing facility in Minnesota

As it begins the rollout of the all-wheel-drive Jaguar XJ and XF models, Jaguar Land Rover has just announced that it has opened a new facility in northern Minnesota for winter testing. Located in International Falls, MN (on the US and Canadian border), the British automaker says it is one of the coldest locations in the Continental US. Jaguar's new Instinctive All Wheel Drive system was developed primarily to help sell more cars in the northern US, so it only makes sense to open a testing area in the US as well.
With temperatures that can drop to minus 55 degrees Fahrenheit, International Falls was chosen to mimic some of the worst weather a Jaguar or Land Rover will ever see. The grounds house testing chambers, various road surfaces and even a frozen lake. This new facility complements the hot-weather testing grounds in Phoenix, AZ.
The official press release is posted below.

Jaguar Land Rover opens new $1.6 billion factory in Slovakia

BRATISLAVA, Slovakia — Jaguar Land Rover is opening a new, $1.6 billion plant in Slovakia, the luxury car maker's first in continental Europe. The U.K.-based company, owned by India's Tata Motors, built the plant near Nitra, about 65 miles east of Bratislava, to initially produce 150,000 cars a year. The Slovak government is giving the carmaker investment subsidies of up to 130 million euros ($148 million). Slovakia is a regional car-making powerhouse. Germany's Volkswagen AG, France's PSA Peugeot Citroen and South Korea's Kia Motors all have a major plant in this Central European country of 5.4 million people. The company said it will shift all production of its Discovery model from Birmingham, England, to Slovakia amid falling diesel sales, vehicle taxes and uncertainty about Britain's Brexit departure from the European Union.Related Video: