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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.

All Jaguars and Land Rovers to get diesel engines... almost

Virtually all Jaguar and Land Rover vehicles – except the F-Type sports car – will get a diesel engine option in the next three years, the company confirmed Sunday night at an event before the Detroit Auto Show. The aggressive blitz begins this fall, when the 2016 Range Rover and Range Rover Sport will launch with available turbocharged 3.0-liter V6 diesel engines. They will push out 254 horsepower and 440 pound-feet of torque, while returning fuel economy of up to 28 miles per gallon on the highway. The combined rating in city and highway driving will be 25 mpg. The Rovers will be followed in 2016 by the XE sedan and F-Pace crossover, which will offer the 2.0-liter turbodiesel four-cylinder engines, in addition to gasoline units. The diesel-powered XE is expected to get at least 40 mpg on the highway, Jaguar Land Rover North America CEO Joe Eberhardt said. The oil-burners are expected to offer 20-to-30 percent improvements in fuel economy compared with gasoline engines, depending on the vehicle. JLR's announcement comes as gasoline prices have plummeted in the United States, and regular fuel costs about $1 less than a gallon of diesel, according to AAA research. Still, the company is taking the long view, and Eberhardt said diesel engines offer greater performance and range than other options. JLR expects about 20 percent of its customers will opt for diesel engines. "We strongly believe this is what our customers will want, regardless of the fluctuations in gas prices," he said. JAGUAR LAND ROVER DEBUTS DIESEL POWER OFFERINGS, JAGUAR XE AND ANNOUNCES PLANS FOR PRODUCTION OF AN ALL-NEW JAGUAR PERFORMANCE CROSSOVER AT 2015 NORTH AMERICAN INTERNATIONAL AUTO SHOW • Jaguar Land Rover to introduceadvanced, highly fuel-efficient, clean-diesel powertrain options on virtually every Jaguar and Land Rover model sold in North America • The Jaguar F-PACE performance crossover to join Jaguar lineup in 2016 • Land Rover Range Rover HSE Td6 and Range Rover Sport HSE Td6 debut in U.S.; on sale in 2015 • North American debut of the Jaguar XE at NAIAS 2015 • Jaguar Land Rover announces global sales up 9% in 2014 (MAHWAH, N.J.) – January 11, 2015 – Jaguar Land Rover confirms several new vehicle announcements today including an all-new model to the Jaguar lineup, the Jaguar F-PACE, and diesel power options for most of its luxury line up, beginning with the 2016 MY Range Rover and Range Rover Sport luxury SUVs.

Jaguar may join the FWD, small-car parade

Was it right for Chevrolet to detune the 1975 Corvette's base engine to 165 horsepower? Was Aston Martin wrong to make the Toyota iQ-based Cygnet? Is BMW crazy to be testing the new 1 Series with three-cylinder engines and front-wheel drive? It seems now, just as in the 1970s and 1980s, that emissions regulations and social considerations are driving some automakers to adopt unbefitting practices to maintain acceptance in the eyes of governments and consumers. Jaguar has jumped on the bandwagon, and is considering development of small, frugal, front-wheel-drive cars to help lower Jaguar Land Rover's average vehicle CO2 levels in light of tightening European emissions regulations, Autocar reports.
By 2020, the European Union expects the model range of every manufacturer to average 95 grams per kilometer, which is a new law passed by the European Parliament in April. Manufacturers who make more than 300,000 vehicles per year must meet these targets, and JLR is expected to be producing up to 700,000 vehicles per year by then. CO2 regulations after 2020 will only get stricter, as EU politicians already are talking about lowering CO2 levels to between 68 g/km and 78 g/km. (To put that in perspective, Autocar posits that driving a fully charged electric vehicle in Europe produces about 75 g/km when factoring in the power-generation infrastructure.)
Jaguar has some choices here, but so far they all have drawbacks. It could develop a new, compact chassis architecture for a line of compact vehicles, but the investment required for such a project could be prohibitively expensive. Jaguar has been looking into using the Land Rover Evoque platform for a small SUV, Autocar reports, but Land Rover brand manager John Edwards raises issue with such a plan, saying it may not be financially feasible.