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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)

Cat Scratch Fever: Jaguar's turnaround looks toward the US

It is ironic that a British car company, steeped in the European sports-car tradition and now owned by an Indian industrial conglomerate, will ambitiously be seeking to attract customers in the United States with, of all things, a truck. But there it is: Jaguar's beefy F-Pace crossover, the first SUV in the company's 80-year history, hit the ground last month at the Frankfurt motor show. The F-Pace – along with the new XE sedan designed to take on the BMW 3 Series and Audi A4 both in Europe and on these shores – is spearheading the brand's hoped-for turnaround on this side of the Pond. In the States, Jaguar is still a big player for Tata Motors of India, which bought Jaguar Land Rover from Ford for $2.3 billion after months of back-and-forth negotiations in 2008. It seemed like an incredibly brassy move at the time, when the economy worldwide was reeling and Britain's automotive industry was on its heels. And while the Jaguar brand name has a grand historical resonance, in the first nine months of 2015 it moved just over 11,000 cars in the US, down five percent for the same period the previous year. But if Porsche can capitalize on SUV sales, so can Jaguar. The tea leaves are promising come next spring, when both new premium luxury models arrive in the US. The F-Pace will have a starting price of about $43,000; the sedan range starts at a competitive $35,000. View 25 Photos Architecturally, both models are similar, with a modular aluminum chassis, and, for the F-Pace, a range of gasoline and diesel engines for Europe as well as rear- or all-wheel drive. For the American market, the model-year 2017 crossover will launch with a 380-horsepower gasoline V6 mated to an eight-speed transmission and all-wheel drive. Later in 2016, a 180-hp four-cylinder Ingenium diesel is expected to be added to the lineup. Both models are currently built in the UK, although if demand increases, Jaguar is likely to shift some production to Brazil, China, or Eastern Europe. I wanted a Jaguar that was designed as a crossover, not the other way round. For Jaguar design director Ian Callum, who showed up at the SUV's formal debut in Frankfurt, skepticism – did we mention that Jaguar was a sports-car company? – turned to enthusiasm as his team worked to develop some "drama" in the SUV's shape. "I wanted a Jaguar that was designed as a crossover, not the other way round," he said.

Jaguar CEO says people just don't want EVs right now

"Customers are not impressed with it currently." These are the words of one Ralf Speth, CEO of Jaguar Land Rover, spoke at the Automotive News Europe Congress in Birmingham, England. The "it" Speth is referring to is battery technology, which he characterized as "too heavy, too expensive," and with power density that's "too low." That all could go some way towards explaining why the British automaker has yet to bring an electric vehicle to market, why it killed the C-X75 hybrid-turbine supercar project, and why it only recently started offering hybrid versions of its Range Rover models (and has yet to offer them in the United States). That doesn't mean the company won't pursue electric propulsion in the future, though. According to Automotive News Europe, Speth forecasts that "the next generation of batteries will be higher density, lower weight and the cost will come down." What he didn't say, exactly, is when he expects that next generation of battery tech to come around – or when JLR will start to more closely embrace electric propulsion. In the meantime, Jaguar Land Rover will continue investing in research and development. Since Tata acquired the brands from Ford seven years ago, JLR has quadrupled its R&D budget and doubled the number of engineers on staff. Related Video: