In order to keep pace with rival luxury makers Audi and Mercedes-Benz, Jaguar Land Rover has laid out plans for a deal to build a factory in Brazil, one of its key growth markets.
The plant, which would assemble cars from parts built in British factories, would ease some pressure on production in the UK and give the fast-growing luxury carmaker a stronger foothold in the country and other South American markets.
“We are in very intensive discussions with government and hopefully we will have a decision as soon as possible,” Ralf Speth, JLR’s chief executive, said. “It’s a very interesting market. In Brazil we have a very high market share. With Land Rover we outperform BMW and Audi, and we don’t want to lose that.”
JLR, which is building a factory in China that will start production in 2015, hopes to construct a plant with annual production of about 10,000 vehicles, three people with knowledge of the internal plans said.
Mercedes also only recently announced its plans to spend €170 million on an assembly plant in Brazil, two weeks after luxury rival Audi announced its own €150 million factory in the country.
JLR has always stressed its dedication to the UK, where it spends the majority of its annual £2.75 billion investment, but with a global sales network and UK plants running at full tilt, the company is keen to expand its manufacturing footprint outside of Britain.
Also, its sales in Brazil are up 40% year on year in the first eight months of 2013, and are on track to pass 10,000 by the end of the year. Land Rover SUVs account for more than 90% of sales.
Via Financial Times
by Aurel Niculescu
) - Thursday, October 3rd, 2013 - filed under Industry
, Land Rover
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