JLR announces big-ticket investments in manufacturing, new products at Geneva Motor Show

Geneva, March 5, 2013: Jaguar Land Rover has revealed its latest plans for further investment in technology and innovation at the ongoing Geneva International Motor Show.

The Tata Motors-owned carmaker is to increase its investment in its new Engine Manufacturing Centre in Wolverhampton to more than £500 million (Rs 4,147 crore) and create an additional 700 jobs. It had previously committed £350 million (Rs 2,902 crore) and 750 jobs to the new plant.

The facility will open later this year with the first engines coming off the production line in 2015. According to Autocar UK, the plant will make engines of “up to four cylinders” and will play a significant part in shedding JLR’s dependence on the Ford-sourced engines it uses today.

The engine facility, which is essential to support JLR’s long-term strategic growth plans, will develop a new generation of technologically advanced, lightweight 4-cylinder low emission diesel and petrol engines.

The state-of-the-art facility is the first in the company's history to be entirely designed and specified by Jaguar Land Rover. Spread over 100,000 square metres, the plant will include an engine testing centre alongside the manufacturing and assembly halls. The building, according to the company, will meet the highest standards of sustainable production and will feature a variety of energy efficiency technologies.

Speaking at the show, JLR's Chief Executive Officer, Dr Ralf Speth confirmed that eight new or revised models will join the line-up for 2013. The carmaker plans to invest £2.75 billion (Rs 22,808 crore) in product development to support these models. They include the Jaguar F-Type and the introduction of the world's first nine-speed gearbox (by ZF) in its Land Rover product line-up.

The news comes as JLR enjoys a period of sustained growth. With one month to go before the end of its fiscal year, it has already broken its previous annual sales record, selling 357,773 vehicles in 2012, up 30 percent over 2011. The Range Rover Evoque has been a prime contributor to overall sales.

In India, Jaguar Land Rover recorded a 32 percent growth in wholesales in 2012 at 2,393 cars compared with 1,813 cars in the previous year. On January 21 this year, the company began production of the XF saloon at its plant in the outskirts of Pune. The initial Pune-built Jaguar XF models feature the company’s 2.2-litre diesel engine, which has been introduced to the Indian market. The Jaguars are built alongside the Land Rover Freelander 2 which has been produced at the Pune plant since May 2011.

Photograph: The new Engine Manufacturing Centre.