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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:

European automakers gear up for Brazilian production

Brazil is the place to be, apparently. Toyota has been investing in the South American country, as has BMW, which announced a $261 million investment in October 2012, on the heels of an Audi factory announcement in San José Chiapa. The high-end immigration is only set to continue, as Mercedes-Benz and Jaguar-Land Rover have both announced plans to set up manufacturing operations there.
Mercedes is the big news here, as its new facility will see the German manufacturer invest 170-million euros for production of its next-generation C-Class and upcoming GLA-Class. "Brazil is an important future market. With our local production we accept the challenge and take on the competition," noted Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans. Production is expected to begin by 2016.
Jaguar-Land Rover, meanwhile, isn't so concrete in its plans. The news of its investment in South America comes from a job posting for a plant quality manager in Brazil that was picked up by the UK's AutoCar. "Portuguese language skills will be definite advantage" for interested candidates, according to the job listing. The want ad follows on the heels of remarks by Jaguar Land Rover's Dr. Ralph Speth, who said there are "very intensive discussions" with Brazil's government. Unlike Mercedes, there's no mention of which vehicles will be produced in South America, although AutoCar thinks the Freelander, sold in the US as the LR2, is a leading contender.

Jaguar XF Sportbrake is the cure for the common F-Pace

Before Jaguar introduced the F-Pace crossover, the only way an American could get their hands on a long-roof leaper was to either move to Europe and buy an XF Sportbrake or pick up the rare X-Type Sportwagon on the used market. But now that the F-Pace is on sale, there's no need for a Jag wagon (henceforth known as the Jagon), right? Wrong. Spotted lapping the Nurburgring, the second-generation XF sedan transitions to wagon duty as naturally as the first-gen car did, promising a boost in cargo capacity without sacrificing the good looks of Jaguar's middle child. But the sloping roofline won't do the XF's versatility too many favors – as our spies rightly state, it looks like Jag's designers are favoring style over outright cargo space. Beyond the roofline, expect the new Sportbrake to follow its predecessor's example and adhere very closely to the XF sedan. Don't expect any changes from the firewall forward, with most of the changes above the beltline and at the tail, where Jag's designers obviously need to rethink the look to accommodate the rear hatch. The overall taillight shape should stay the same, while the lower bumper will carry over with only modest adjustments. Under hood, our spies report the car shown here is Jaguar's potent S trim, with a 380-horsepower, 3.0-liter, supercharged V6. While it's a safe bet that Jaguar will sell the Sportbrake in Europe with all the lesser XF engines – not to mention R and RS variants – it's unlikely all three mainstream engines will arrive in the US. Oh yeah, our spies claim there's a chance the long-roof XF will hit the US market. We're calling it a very slim chance, though. Audi and BMW deported their A6/5 Series wagons years ago, leaving the segment to the Mercedes-Benz E-Class. The Volvo V90 will add some Swedish flair to the segment, but the bottom line is that importing and federalizing a new model to compete in a segment responsible for just 20,000 units per year isn't good business. Here's hoping Jaguar makes a bad business decision. Related Video: Featured Gallery Jaguar XF Sportbrake: Spy Shots View 11 Photos Image Credit: CarPix Spy Photos Jaguar Wagon Luxury jaguar xf sportbrake