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Land Rover to build Discovery Sport at new Brazilian factory

Looking forward to getting your mitts on a new Land Rover Discovery Sport? Well you should, because it promises to be a markedly better product than the Freelander/LR2 it replaces. Just don't assume it will necessarily be built in the UK, as just about every Land Rover has in the company's 66-year history. The new Discovery Sport (pictured above in Sao Paulo) will, of course, be built in the UK, at the Halewood plant where the Evoque is made and which has in the past handled the Freelander, the Jaguar X-Type and a variety of Fords. But it will also be assembled for local consumption at JLR's new factory in Changsu, China. And, according to the press release down below, it will also be made for the Latin American market at the new factory being built in Brazil. The new plant is being built in Itatiaia on the outskirts of Rio de Janeiro and will come online in 2016. Once it gets up to speed by the end of 2020, it will have the capacity to build 24,000 vehicles each year, ratcheting its workforce up from 400 when it opens to nearly 1,000 when all's said and done. The Discovery Sport will be one of the products made there for the local market, but it surely won't be the only one. As in China, we expect the Evoque will be built there as well, and we wouldn't be surprised to see the new Jaguar XE join it in the near future, either. Don't expect the Brazilian-made vehicles to be sold in the US, though: those will likely still be imported from the UK... at least, that is, until the facility said to be under consideration for the southern United States opens its doors. JAGUAR LAND ROVER CONFIRMS ITS ALL-NEW DISCOVERY SPORT FOR BRAZIL FACILITY - Jaguar Land Rover confirms Discovery Sport as one of the models to be produced at its new local manufacturing facility in Brazil - R$750m investment in the new facility in Itatiaia in the State of Rio de Janeiro - Annual production capacity of 24,000 units for the Brazilian market only – from 2016 Sao Paulo, Brazil – Jaguar Land Rover confirmed today, at the Sao Paulo International Motor Show, that its breakthrough Land Rover Discovery Sport will be one of the first models to be built at its new R$750m (GBP240m) local manufacturing facility in Itatiaia, Brazil. The new factory, which will see a total investment of R$750m (GBP240m) by the end of 2020, will supplement UK production and have the capacity to build 24,000 vehicles annually for the Brazilian market.

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:

Rising aluminum costs cut into Ford's profit

When Ford reports fourth-quarter results on Wednesday afternoon, it is expected to fret that rising metals costs have cut into profits, even as rivals say they have the problem under control. Aluminum prices have risen 20 percent in the last year and nearly 11 percent since Dec. 11. Steel prices have risen just over 9 percent in the last year. Ford uses more aluminum in its vehicles than its rivals. Aluminum is lighter but far more expensive than steel, closing at $2,229 per tonne on Tuesday. U.S. steel futures closed at $677 per ton (0.91 metric tonnes). Republican U.S. President Donald Trump's administration is weighing whether to impose tariffs on imported steel and aluminum, which could push prices even higher. Ford gave a disappointing earnings estimate for 2017 and 2018 last week, saying the higher costs for steel, aluminum and other metals, as well as currency volatility, could cost the company $1.6 billion in 2018. Ford shares took a dive after the announcement. Ford Chief Financial Officer Bob Shanks told analysts at a conference in Detroit last week that while the company benefited from low commodity prices in 2016, rising steel prices were now the main cause of higher costs, followed by aluminum. Shanks said the automaker at times relies on foreign currencies as a "natural hedge" for some commodities but those are now going in the opposite direction, so they are not working. A Ford spokesman added that the automaker also uses a mix of contracts, hedges and indexed buying. Industry analysts point to the spike in aluminum versus steel prices as a plausible reason for Ford's problems, especially since it uses far more of the expensive metal than other major automakers. "When you look at Ford in the context of the other automakers, aluminum drives a lot of their volume and I think that is the cause" of their rising costs, said Jeff Schuster, senior vice president of forecasting at auto consultancy LMC Automotive. Other major automakers say rising commodity costs are not much of a problem. At last week's Detroit auto show, Fiat Chrysler Automobiles NV's Chief Executive Officer Sergio Marchionne reiterated its earnings guidance for 2018 and held forth on a number of topics, but did not mention metals prices. General Motors Co gave a well-received profit outlook last week and did not mention the subject. "We view changes in raw material costs as something that is manageable," a GM spokesman said in an email.