In order to keep up with rivals 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 today.
The manufacturing facility, set to only assemble cars from parts produced in British factories, would ease production in the UK and give the very fast-growing luxury automaker a growth pillar 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 also building a plant in China that is set to start car building in 2015, hopes to construct a plant with annual production of about 10,000 vehicles, according to three people with knowledge on the matter.
Mercedes also only recently announced its plans to invest €170 million on an manufacturing facility in Brazil, two weeks after luxury rival Audi announced its own €150 million plant in the country.
JLR’s sales in Brazil have grown 40% year on year in the first eight months of the year, and are close to passing 10,000 by the end of the year. Land Rover SUVs make up for more than 90% of deliveries.
Via Financial Times