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Jaguar Land Rover cutting production in face of falling demand

LONDON — Jaguar Land Rover will reduce or stop production on certain days at two of its British factories over the next few weeks as Britain's biggest carmaker pursues cost-cutting measures in response to falling demand. JLR posted a 2.3% drop in retail sales in the three months to the end of December and has targeted billions of pounds worth of savings to tackle falling diesel demand in Europe and a tough sales environment in China. The firm will halt production on selected days over a four-week period from late February at its Castle Bromwich factory in central England and stop production on some half or full days at its nearby Solihull facility until the end of March. "The external environment remains challenging for our industry and the company is taking decisive actions to achieve the necessary operational efficiencies to safeguard long-term success," the company said in a statement. "We have confirmed that Solihull and Castle Bromwich will make some minor changes to their production schedules to reflect fluctuating demand globally, whilst still meeting customer needs." The move is not connected to coronavirus, a spokeswoman said, which prompted Fiat Chrysler to warn on Thursday that a European plant could shut down within two to four weeks if Chinese parts suppliers cannot get back to work. Related Video:

2017 Jaguar XE First Drive

For the first time in decades, the prize for the best-driving compact luxury sport sedan is very much up for grabs. BMW's 3 Series, the segment's longstanding archetype, has grown a bit soft, distant and pricy. Its Japanese rival from Infiniti, the Q50, lost the plot thanks to its video game steering and dated powerplant. The Audi A4 is due for replacement and the fantastic Mercedes-Benz C-Class skews luxury over sport. The Cadillac ATS? With an excellent chassis hobbled by middling powertrains and the devil's own infotainment system, it isn't selling. Unlikely as it sounds, the Lexus IS is probably the segment's best driver, but you've got to learn to love those turn-to-stone looks. So, where's a segment malcontent to look? Provided he or she is patient enough to wait for this car's spring 2016 arrival, allow us to recommend the 2017 Jaguar XE. Let's be honest. Jaguar really needed to come out with guns blazing. The last time the British brand battled in the compact premium sport sedan segment, its much-maligned X-Type slinked into the underbrush, tail between its legs after just a single generation. While the X was in some ways a better car than history will begrudge it, there's no getting around that Jaguar brought a front-wheel-drive-based knife to a rear-wheel-drive gun fight. This new XE will need to be a very different kitty, and it is. Internally known as X760, Jag's latest rides atop an all-new aluminum-intensive modular architecture wearing a handsome mosaic of aluminum and steel body panels. While the XE's design has struck us as very familiar since it first bowed in September, it's an attractive shape. Its longish, 111.6-inch wheelbase and wheels-at-the-corner stance gives the design a planted look emphasized by its wide rectangular grille and prominent lower air intakes. Jaguar claims a super-slick .26 coefficient of drag, but that's the skinny-tired overseas base model that we'll never see – ours will likely ring up a few hundredths higher. The aluminum body-in-white is itself an impressive piece of work, weighing just over 550 pounds. Vehicle engineering manager Jonathan Darlington says it's 20-percent stiffer torsionally than the XF, and "the lightest in the sector by far." What's more, the chassis incorporates liberal amounts of recycled aluminum (a claimed world first) and increased use of structural adhesives.

Jaguar Land Rover considering Mexican plant

Jaguar Land Rover has been expanding its production out of the UK and into overseas markets, and according to the latest word from Bloomberg, the British automaker is considering spending more than half a billion dollars to build a new assembly plant somewhere in Mexico. Since the Range Rover Sport and Evoque are two of the company's top sellers in the US, those would reportedly be the most likely to be manufactured at the Mexican plant, although Jaguars could follow as well. The automaker was previously said to be leaning towards a location in the Southern US, and while it could conceivably proceed with plans for both, it would be more likely to go with one or the other. State and local authorities below the Mason-Dixon line have been soliciting the business with various incentives, but lower labor costs South of the Border could prove more attractive to JLR and its parent company Tata. It wouldn't be the first, after all. Over the past month alone, General Motors committed to building the next Chevy Cruze in Mexico, Toyota did the same with the Corolla, Hyundai was reported to be considering a similar step, and Ford announced two new plants in the country amounting to a $2.5-billion investment. Luxury automakers like Audi, BMW and Mercedes have also been delving into Mexican production as well, blazing a path that JLR could potentially follow. The British automaker recently opened a plant in China and another in Brazil, while investing in additional facilities in the UK as well.