Partnership showcase for the future, says car giant Jaguar

Jaguar Land Rover has awarded a multi-million pound contract to BorgWarner UK in Bradford to design and manufacture state-of-the-art turbocharging technologies for its next generation of car engines.

The US-owned engineer started working with Huddersfield University in 2011 to research new materials and is now helping to create a new master of science degree in turbocharging.

Speaking at yesterday’s launch event, Rob Johnson, purchasing director at JLR, said: “We see that [partnership] as really important for strengthening the technology and the engineering capability of our suppliers. This is a showcase of what we would like to see around the UK.”

He added that Britain’s manufacturing industry needs a workforce with the right skills to be innovative and competitive.

“That’s why we are very pleased with the tie-up,” he told the Yorkshire Post. “It means BorgWarner is going to be able to have access to the very best engineering and technology insight into the products it is manufacturing for us.

“That gives us a real opportunity for the future to sustain the work here and to prosper.”

BorgWarner will provide components for JLR’s new family of four-cylinder gasoline and petrol engines, which are expected to launch in 2015.

It is investing to expand its existing production lines and build a new engineering centre at its factory in Bradford, adding 130 new skilled jobs to the workforce of 440.

Mr Johnson said that JLR is keen to support its UK supply chain, but not for altruistic reasons.

“This [contract] is great news for us because it enables us to work in the UK with one of the world’s leading turbocharging manufacturers. It means we can work locally,” he said.

“One of the things we are very keen to do is to develop and enhance our supplier base in the UK.

“It ticks a number of boxes. One is the technology BorgWarner can bring from its global corporation with great technology and great manufacturing know-how.

“The other is this factory; it’s very good, it’s very clean, it’s very light and airy and the workforce is particularly engaged.”

He added: “It gives us some advantages if we’ve got suppliers close to us that can work with us on the technical development and design of our products.

“From a manufacturing point of view it also gives us an advantage because it means we can have a very responsive and flexible reaction from suppliers.”

BorgWarner won a £2.33m share of the Government’s regional growth fund to support its research and development work in Bradford and at Huddersfield University.

Professor Andrew Ball told business and civic leaders at yesterday’s launch that the Government backing represents a vote of confidence in the tie-up between BorgWarner and his institution.

He said: “It’s precisely the type of function and role that the university aims to fulfil.”

The new degree will be open and will provide the next generation of turbocharger engineers with the knowledge and skills they need in the future, he added.

Prof Ball said: “Clearly, these are exciting times. Great things are going to happen over the coming years.”

Bradford and Huddersfield are home to a number of companies in the sector, including Cummins, Denso, David Brown Gears and Cinetic Landis.

Tony Reeves, chief executive of Bradford council, said the area is becoming a hub for automotive engineering.

“People see these big sheds as they drive past,” he said. “What they don’t realise is they have these really high value jobs in them.”

Simon Spencer, managing director of BorgWarner UK, told the Yorkshire Post that JLR is excited by its partnership work with Huddersfield University, the local authorities and the Department for Business, Innovation and Skills.

“Some of our competitors weren’t doing that type of stuff, but JLR said they wanted to work with organisations such as ourselves because we are interested in UK research and development and academic links. I have a lot of respect for them for having that vision.”

BorgWarner, headquartered in Michigan, had global revenues of $7.18bn last year.

A manufacturing success story

JAGUAR Land Rover has been one of the stand-out success stories of UK manufacturing since its takeover by Indian car maker Tata Motors.

Sales of British-made Jaguars and Land Rovers rose 18 per cent to 115,504 units in the three months ending March 31.

Key to that was a 21 per cent rise in sales in China, JLR’s fastest growing market.

JLR accounts for more than three quarters of Tata Motors’ group revenue.

The company is investing £500m to create a new engine manufacturing centre near Wolverhampton, just down the road from Bradford in terms of global supply chains.

Tata paid $2.3bn for JLR in 2008. It is now looking like the deal of the decade.