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Jaguar Land Rover to cut $6.8 billion in costs

Jaguar Land Rover reduce costs by $6.8 billion and will push annual production volume to 1 million vehicles under a secret project called Leap 4.5, according to Reuters. The British automaker wants to achieve these ambitious goals by the end of the decade to compensate for the changing market in China and to counteract the price of meeting stricter emissions standards around the world. Leap 4.5 won't mean firing workers or cutting the automaker's $4.5 billion annual research budget. JLR will instead find savings by underpinning more models with modular platforms and by adjusting its supply chain. Future factories like the one in Brazil and the proposed plant in Slovakia also won't be affected by the new strategy. Globally, JLR continues to grow, and deliveries are up two percent through October 2015 to 390,965 vehicles. Business just last month was up 24 percent year-over-year to 41,553 units. However, the auto market's downturn in China has taken a bite out the automaker's success because volume dropped there 32 percent in the third quarter, Reuters reported. A global volume of 1 million vehicles will mean more than doubling 2014's 462,678 deliveries, but JLR has made significant investments to boost production recently. In addition to the future factories, it opened its first plant in China last year and an engine assembly site in the UK. The company also signed a deal with Magna Steyr in 2015 to build an upcoming model in Austria. Related Video:

California adapts ZEV mandate with PHEVs for smaller automakers

California is the nation's largest market for zero-emissions vehicles with over 100,000 of them estimated to be on the roads there. The state's goal is to keep that number growing every year. To that end, the California Air Resources Board is now tweaking its rules in a way that might not boost ZEVs but could mean more plug-in hybrids for the Golden State. Jaguar Land Rover, Mazda, Mitsubishi, Subaru, and Volvo asked for an exemption to the state's zero-emissions vehicle mandate last year due to their relatively small development budgets compared to larger automakers. CARB denied their request but did craft a compromise, according to Automotive News. Rather than being required to offer a ZEV in the state, companies with an annual global revenue of less than $40 billion, like those in this group, may instead sell plug-in hybrids to earn ZEV credits. The companies aren't completely off the hook, though. If these plug-in hybrids don't earn enough credits, the corporations must buy them on the market to make up the difference. Automakers with popular electric models like Nissan and Tesla have made a big business through this trading system by selling their surplus to rivals. Tesla alone pocketed $51 million in the first quarter from this part of its business, according to Automotive News. The changes to the regulations also aren't set in stone, yet. CARB is meeting in 2016 and could adjust things further at that time. Related Video: News Source: Automotive News - sub. req. via Hybrid CarsImage Credit: Justin Sullivan / Getty Images Government/Legal Green Jaguar Land Rover Mazda Mitsubishi Subaru Volvo Emissions Electric Hybrid California zev credits zero emissions vehicle

Jaguar models could rev with inline-six engines again

Rumors are swirling once again that Jaguar might return an inline-six engine to its lineup. Autocar claims Jaguar Land Rover will use the modular Ingenium engine family to create a 3.0-liter straight-six. The new motor will replace the automaker's current V6. As with the Ingenium 2.0-liter four-cylinder, JLR will likely offer the powerplant in gasoline- and diesel-fueled versions. A rumor in May 2015 also suggested JLR would create an Ingenium-based turbocharged 3.0-liter inline-six and a 1.5-liter three-cylinder unit. According to Autocar, the engine bay in the XE, XF, and F-Pace can already fit the longer engine. The automaker isn't talking, though. "We can't comment on future product one way or another," company spokesperson Nathan Hoyt told Autoblog. Jaguar built much of its performance legacy with straight-six-powered vehicles. While the C-Type and D-Type were winning races with the engine layout, practically every Jaguar production model used them as well. Today, straight-sixes are less common. BMW continues to use them, and Mercedes-Benz reportedly also plans to offer one soon. While Autocar's report is still just a rumor, the move to an inline-six could be advantageous for JLR. For example, using an Ingenium-derived design could simplify manufacturing by allowing the company to build the powerplant in one factory alongside the 2.0-liter version. Returning to a design with such an important heritage for Jaguar would also make life easy for the brand's marketing team because it could link the new engine to past racing glory. Related Video: