Jaguar Land Rover (JLR) has made the decision to produce an electric version of its iconic Defender off-road vehicle in Slovakia, dealing a blow to the UK auto industry. While the specifics of JLR's electric plans have yet to be revealed, the company has confirmed that Nitra, Slovakia, will be "the home of the Defender." This move follows JLR's commitment to building its Range Rover models in the UK, where the electric versions will also be manufactured.
The choice to produce the electric Defender in Slovakia is not only a setback for UK ministers hoping to see more EV production in the country, but it also adds to the struggles faced by the UK auto industry. The industry has witnessed a decline in recent years, with 2022 production reaching 775,000 cars, a 10% drop from the previous year.
The decision to manufacture the electric Defender in Slovakia comes despite the fact that the Nitra plant has been producing combustion-engine Defenders and Discoverys since its opening in 2018. The Defender, a renowned vehicle that has attracted customers such as the late Queen Elizabeth II and pop stars like Paul McCartney, has experienced a resurgence in popularity in recent years and has become JLR's best-selling model.
JLR has plans to introduce nine fully electric models by the end of the decade as part of its new strategy to comply with the upcoming ban on petrol and diesel cars in the UK. However, the introduction of new "rules of origin" tariffs poses a potential challenge for cars built in Slovakia and sold in the UK. Under these rules, electric vehicles traded between the UK and the EU will face a 10% tariff if less than 45% of their value comes from the region.
Barbara Bergmeier, JLR's executive director of industrial operations, has called for a delay in implementing these tariffs, citing the need for more time to prepare, particularly concerning the battery. She believes that a later timeframe would be beneficial for all parties involved.
Meanwhile, as the European market faces increased competition from cheaper Chinese electric vehicles, concerns have arisen regarding the ability of European manufacturers to compete on price. JLR, as an upmarket manufacturer, believes it is less susceptible to this threat. Thomas Mueller, JLR's executive director of product engineering, asserts that the Chinese price war in the EV sector is not sustainable, and JLR is content to not participate in it.
While the decision to produce the electric Defender in Slovakia may disappoint the UK auto industry, JLR's commitment to building electric versions of other models in the UK provides a glimmer of hope for the country's EV production future. The shift towards electrification is inevitable, and JLR aims to position itself as a leading player in this transformation.