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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 opens new engine plant in the UK

The heads of Jaguar Land Rover are having a busy couple of weeks opening factories. Just days after inaugurating the company's first overseas plant in China, the automaker's new Engine Manufacturing Center in the UK is being inaugurated, as well. The plant near Wolverhampton, England, marks the first time in decades that JLR is building its own powerplants in-house. Further signaling the importance of this launch for the business, Queen Elizabeth II and Prince Philip were on hand and even tweeted about it.
The factory's first major project is to build JLR's latest Ingenium four-cylinders, starting with the 2.0-liter diesel version. "Our new Engine Manufacturing Centre is an important step in advancing the competitiveness and capability of the UK automotive sector. The production of in-house engines will support the expansion of the UK supply chain providing critical mass for inward investment," said Trevor Leeks, plant operations director in the automaker's announcement.
Opening the doors to the Engine Manufacturing Center has been years in the making for JLR. The plant was first announced in September 2011 and broke ground in June 2012. Building it cost the company 500 million pounds ($800 million) and created 1,400 new jobs. Of course, being a state-of-the-art factory, considerations were made to make the place as energy efficient as possible. That meant installing the UK's largest solar array with 21,000 panels to produce about 30 percent of the site's electricity needs.

Jaguar Land Rover opens first overseas factory in China

Anyone who's a car fan knows that Jaguar and Land Rover cars and trucks all come from the UK. And while we don't doubt that will remain true for the most part, it won't be an absolute truth for long, as the British automaker has just opened its first factory overseas.
Its new plant in Changshu, China, is the result of a $1.8-billion joint venture between JLR and local automaker Chery. It covers some 4.3-million square feet and will, once at peak capacity, produce 130,000 units specifically for the Chinese market, where JLR sells over 100,000 vehicles each year to make it the company's single largest market worldwide.
Production at what's officially known as the Chery Jaguar Land Rover Automotive Company will start with the Evoque, of which one in five globally are currently sold in China. Production will eventually encompass three models. We already know that the Discovery Sport will be next, but the third model line has yet to be announced. JLR has confirmed, however, that the Changshu plant will produce unique models and derivatives specifically for the Chinese market, so we wouldn't be surprised to see a long-wheelbase version of the forthcoming XE or next-generation XF assembled there to satisfy local tastes.