Jaguar Land Rover begins building its first manufacturing plant in Brazil
British car manufacturer Jaguar Land Rover has this week started building its new £186million manufacturing facility in Brazil.
The new state-of-the-art manufacturing facility in Rio de Janeiro, Brasil, will also house JLR’s first overseas Education Business Partnership Centre. The luxury automaker is the first British manufacturer to build a factory in the country. It will employ 400 people and will have an annual capacity of 24,000 vehicles, according to reports.
Dr Ralf Speth, chief executive officer, said, “Our new facility in Brazil is an important strand of Jaguar Land Rover’s long term sustainability. The start of construction is a significant milestone and represents another step forward in our plans to create a truly global manufacturing footprint.
“The confirmation of Jaguar Land Rover’s first overseas Education Business Partnership Centre demonstrates our commitment to developing the skills needed by tomorrow’s workforce to create a sustainable premium automotive manufacturing industry in Brazil.
“This new manufacturing facility will play an important role in providing vehicles that our customers in Brazil can love for life.”
As part of its on-going commitment to the Brazilian automotive industry, Jaguar Land Rover will be sourcing a range of components from local suppliers as well as importing some parts from its global supply chain. The firm is also investing in its technical assistance services to help suppliers support increased levels of localization in the future.
Although construction only began yesterday, the new Discovery Sport have already been confirmed as one of the vehicles that the company plans to build in Brazil, with the first customer cars expected to drive off the production line in 2016.
Furthermore, JLR’s first recruitment drive is underway and its looking for automotive mechanics, manufacturing operatives and the quality team to join its manufacturing team.
The state’s Governor, Luiz Fernando, attended the groundbreaking ceremony. “Jaguar Land Rover is paving the way to consolidate Rio de Janeiro as the second biggest automotive hub in Brazil. We can consider this an historic achievement for our State.
“Rio de Janeiro offers the perfect conditions to Jaguar Land Rover, allowing the company to build this facility in Itatiaia, where we already have a very well structured automotive hub, with qualified workforce and suppliers.
“In addition to Jaguar Land Rover manufacturing facility, we’re proud to know about the Education Centre that the company will build in our region, the first in Latin America. It’s an honour to host this very important company, and its investments around R$ 750 million, will generate very positive results,” he said.
Jaguar Land Rover has had a presence in the Brazilian market for more than 20 years. Land Rover has held almost 50 percent of the premium SUV market for three consecutive years and Jaguar is one of the country’s fastest growing premium brands with sales increasing almost four-fold in 2013.
Jaguar Land Rover is investing in its dealer network in Brazil and, by the end of March 2015 it will have 42 dealers covering all of the main territories. Brazil is one of Jaguar Land Rover’s top ten markets and the Range Rover Evoque, Range Rover Sport and Land Rover Discovery are the strongest selling vehicles in the country.
Gartner: Leaders Lack Skilled Smart Manufacturing Workers
With organisations rapidly adopting industry 4.0 capabilities to increase productivity, efficiency, transparency, and quality as well as reduce cost, manufacturers “are under pressure to bring their workforce into the 21st century,” says Gartner.
While more connected factory workers are leveraging digital tools and data management techniques to improve decision accuracy, increase knowledge and lessen variability, 57% of manufacturing leaders feel that their organisations lack the skilled workers needed to support their smart manufacturing digitalisation plans.
“Our survey revealed that manufacturers are currently going through a difficult phase in their digitisation journey toward smart manufacturing,” said Simon Jacobson, Vice President analyst, Gartner Supply Chain practice.
“They accept that changing from a break-fix mentality and culture to a data-driven workforce is a must. However, intuition, efficiency and engagement cannot be sacrificed. New workers might be tech-savvy but lack access to best practices and know-how — and tenured workers might have the knowledge, but not the digital skills. A truly connected factory worker in a smart manufacturing environment needs both.”
Surveying 439 respondents from North America, Western Europe and APAC, Gartner found that “organisational complexity, integration and process reengineering are the most prevalent challenges for executing smart manufacturing initiatives.” Combined they represent “the largest change management obstacle [for manufacturers],” adds Gartner.
“It’s interesting to see that leadership commitment is frequently cited as not being a challenge. Across all respondents, 83% agree that their leadership understands and accepts the need to invest in smart manufacturing. However, it does not reflect whether or not the majority of leaders understand the magnitude of change in front of them – regarding technology, as well as talent,” added Jacobson.
Technology and People
While the value and opportunities smart manufacturing can provide an organisation is being recognised, introducing technology alone isn’t enough. Gartner emphasises the importance of evolving factory workers alongside the technology, ensuring that they are on board in order for the change to be successful.
“The most immediate action is for organisations to realize that this is more than digitisation. It requires synchronising activities for capability building, capability enablement and empowering people. Taking a ‘how to improve a day in the life’ approach will increase engagement, continuous learning and ultimately foster a pull-based approach that will attract tenured workers. They are the best points of contact to identify the best starting points for automation and the required data and digital tools for better decision-making,” said Jacobson.
Long term, “it is important to establish a data-driven culture in manufacturing operations that is rooted in governance and training - without stifling employee creativity and ingenuity,” concluded Gartner.