JLR to build £240m factory in Brazil
West Midlands luxury car giant Jaguar Land Rover revealed this afternoon it had sealed a £240 million deal to build a new factory in Brazil as it increases sales across South America.
It follows new factories in India and China as the company expands to meet growing worldwide demand for its vehicles.
It is also expanding its range of models, launching a new 'baby' Jaguar saloon in 2015 that will be powered by engines made at its nearly completed £500m factory on the i54 site, on the border of Wolverhampton and South Staffordshire.
The latest move will see a car plant built in Itatiaia, in the state of Rio de Janeiro, employing 400 people and producing 24,000 vehicles a year. The first cars will come off the assembly line in 2016.
It has not been revealed which cars will be produced at the new factory, but they are likely to be Land Rovers - JLR sales in Brazil are up 40% over the last 10 months to 9,549 cars and the best selling models are the Range Rover Evoque, the Freelander and the Discovery.
An agreement paving the way for construction of the plant has been signed by Phil Hodgkinson, global business expansion director of Jaguar Land Rover, and Sergio Cabral, state governor of Rio de Janeiro.
The factory will built on car sales in Brazil and across South America.
JLR chief executive Ralf Speth said: "Brazil and the surrounding regions are very important. Customers there have an increasing appetite for highly capable premium products.
"This new programme will enable us to bring exciting new vehicles to them, with outstanding British design and engineering, creating a world-class Jaguar Land Rover facility incorporating leading premium manufacturing technologies.
"We have established excellent working relationships with the State of Rio de Janeiro, the City of Itatiaia & the Rio de Janeiro State Industrial Development Company and we look forward to attracting new customers to our business in this important market."
Construction work will start the middle of next year. JLR has been in Brazil for more than 20 years. Its sales company, based in Sao Paulo, employs nearly 100 people and there are 36 dealerships across the country.
Sergio Cabral, governor of Rio de Janeiro state, said: "The choice of Rio de Janeiro to host the Jaguar Land Rover's new facility is another historic achievement for our state. We offer perfect conditions to JLR to install its plant in Brazil, as we have an automotive hub in the South Fluminense region that concentrates qualified labor and important suppliers.
"It is a privilege to welcome this great group, with an estimated investment of up to 750 million Brazilian Reals (£240m) and we are confident that this agreement will bring to Brazil extraordinary results."
