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Jaguar Land Rover gets to work on new university R&D center

Jaguar Land Rover has a raft of new products in the pipeline, from the new Defender to the next-generation XF sedan. But new product isn't the only thing the British automaker is investing in: it's also opening new facilities around the world, including what it's calling the National Automotive Innovation Centre back home in the UK. Based at the University of Warwick, the new $220-million R&D center is the result of a joint effort between JLR, its parent company Tata, the manufacturing arm of the university and the British government. The facility will bring together professionals from the automaker as well as its suppliers with academics to encourage, as the name suggests, innovation in the automotive sector. Its 355,000 square feet are earmarked to become the hub for Jaguar Land Rover's advanced research activities, including "workshops, laboratories, virtual engineering suites and advanced powertrain facilities, equipped to enable a full range of design, visualisation and prototyping activities." The cornerstore was just laid in a ceremony this week, but the facility isn't due to open until the Spring of 2017 when it will encompass some 1,000 employees, including 600 relocated by JLR to the new location from other sites in the UK. Related Video: Construction Begins On New UK Automotive Innovation Centre For Jaguar Land Rover - GBP150 million National Automotive Innovation Centre (NAIC) will open in Spring 2017, providing a state-of-the-art technology hub for Jaguar Land Rover's advanced research team and collaborative partners from the supply chain and academia - To keep the UK and Jaguar Land Rover at the forefront of global innovation, the team will develop the vehicles and personal mobility solutions of the future - The NAIC will focus on inspiring the next generation of engineers - from schoolchildren to undergraduates.

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.

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.