Jaguar Land Rover To Manufacture Engines At US$750mn Plant
News: British luxury carmaker Jaguar Land Rover (JLR) will start manufacturing a four-cylinder diesel engine at its Wolverhampton facility from 2014. The facility involves investment of US$750mn, and also produces a turbo-charged four-cylinder gasoline engine. JLR did not reveal the models that will be equipped with the new engine. The engine is small, light and powerful and will be loaded with turbocharging, direct fuel injection and variable valve timing. The engines are likely to be used in the upcoming Jaguar small sedan, announced at the Frankfurt auto show, or in Land Rover models such as the LR2 and the Range Rover Evoque.
BMI View: In the first eight months of the year, JLR sold some 269,653 units globally, an increase of around 16% y-o-y. This is in line with BMI's long-held view of the growing premiumisation trend in the global passenger car market, and we expect the company to continue to post strong sales growth over the year. Vehicles manufactured in the UK represent a large proportion of JLR's global sales, in line with BMI's bullish view on UK autos manufacturing.