JLR to Open Engineering Center in Hungary

Jaguar Land Rover Ltd. plans to open a 100-person engineering office in Budapest, Hungary, early next year to support its expanding supply chain in central and eastern Europe.

JLR says the office will handle engineering, product development and manufacturing functions. The staff there will coordinate with JLR’s other engineering operations in the U.K., China, Ireland and North America.

Hungary’s foreign minister cheered the announcement. But JLR workers fear the move illustrates a broader shift in the company’s operations out of England. JLR has warned of layoffs and production shifts if the U.K. fails to negotiate a “soft” exit from the European Union next spring.

JLR’s announcement comes less than a week after the company launched production of Land Rover Discovery SUVs at its €1.4 billion ($1.6 billion) assembly plant in Nitra, Slovakia. The new factory has capacity to make 150,000 vehicles per year.