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Jaguar Land Rover said to favor Europe rather than US for new plant

With its plants running at full tilt, Jaguar Land Rover is in desperate need of additional manufacturing capacity. That's led to reports that the Indian-owned British company was looking to join European, Japanese and Korean automakers in America's southern states, all while it opened new plants in the UK and China. The company even announced it would be building the Land Rover Discovery Sport in Brazil. Now, though, reports are suggesting that JLR is looking at Europe for a new facility, rather than the US, with Automotive News claiming the company's execs are eyeing the lower costs afforded by Austria and Turkey. The report cites the Birmingham Post (UK), the broadsheet that's closest to the company's headquarters. According to the original report, labor costs and wage disputes with unions are ruling out another factory in the UK, while those same disputes with labor outfits may also be souring the automaker on a US facility. "At this stage Europe seems more likely than America. The union pay dispute had a big effect," an unnamed source told the Post. "There is a feeling of alienation that has been left over from the way the pay talks were handled." JLR, meanwhile, offered a solid no comment to the Post, with a spokesperson saying, "No decision has been taken on future manufacturing locations. We will continue to evaluate opportunities to increase our manufacturing footprint in the future." Related Video:

Jaguar Land Rover and Chery investing in Chinese plant

While the European auto market for Jaguar and Land Rover is waning, Chinese car buyers can't get enough of the British marques. To meet that demand, Tata Motors, parent company of Jag and Land Rover, is partnering with Chinese automaker Chery Automobile Co.
The two announced plans to invest $1.75 billion to build a new plant and create a new, China-focused brand. 2014 is the target for completion of the factory. Jaguars and Land Rovers built at the facility will be the first ever produced outside the UK according to the Associated Press. The JV will be called Chery Jaguar Land Rover Automotive Company Ltd.
The announcement comes less than a month after JLR announced it would open a design studio in China. It's not clear from the reports whether the two announcements are part of the same JV or two separate plans.

Jaguar planning two bodystyles for next XJ

As we alluded to in today's F-Type first drive, Jaguar hasn't been selling its wares in China for very long, and as a result, buyers there usually don't have the same appreciation for the brand's history. So you might reasonably think that the company's recent radical styling shift (kicked off by the 2008 XF) wouldn't be as jarring to the nation's buying populace since they really didn't have the automaker's more traditionally styled models from years past to compare them against.
Yet while Jaguar and its sister marque, Land Rover, continue to pick up steam in China's developing market, that apparently isn't necessarily the case. Local buyers there tend to have more conservative tastes when it comes to styling, preferring more upright dimensions, big back seats and larger quantities of traditional luxury materials (think: chrome and wood) than other markets currently find desirable. Thus, the very bold current-generation XJ sedan may be leaving some sales on the table.
According to Edmunds, Jag doesn't want to risk that, and as such, it is preparing two bodystyles for the next-generation XJ - one with the rakish coupe-like styling of the current model, and a more "old-school" three-box sedan designed to appeal to a wider swath of Chinese buyers.