JLR doubles down on hybrids, US expansion
Land Rover highlights 'increased propulsion flexibility' as it plots greater US presence
Jaguar, we’ve been assured for years now, will be uniquely electric in the future. But the Land Rover bit of JLR (i.e. the entire money-making enterprise) will be far slower to transition to an exclusively battery-powered future. Indeed, while its latest missive about setting out a path to ‘double digit revenue growth’ reminds us that some heavyweight EV options are inbound - the Range Rover Electric and Range Rover Sport Electric primary among them - it also gently applies the brakes to the idea of the lineup becoming exclusively about electrification.
This reasoning is not hard to fathom: making money from an entirely electric luxury portfolio in the short to medium term appears to be a non-starter - especially if your growth agenda centres on North America. To that end, the model singled out as flag carrier for the firm’s future ambitions is not the full-sized Range Rover (perennially popular in big cities) but the Defender, which is imminently due to sprout a downsized variant built on the new EMA platform.
Previously, as the name Electrified Modular Architecture suggested, this was destined to be an EV-only affair; now, not so much. JLR today confirmed that ‘greater propulsion flexibility’ would result in a full hybrid option for all the models built on EMA at Halewood. In other words, space will be made in the platform and production line for the reintroduction of customer-pleasing petrol engines.
In comments to the FT, JLR’s new boss doubled down on the American market pivot, by suggesting the firm would “give everything” to turbocharge its sales to “millionaires and billionaires” as it seeks double-digit annual revenue growth within five years. “Petrol is huge in the US,” noted PB Balaji, effectively ruling out the idea that the combustion engine is on a timer in production terms.
Moreover, he did not rule out the idea of localised manufacturing in a market that favours domestic factories. It is to this end that JLR signed a non-binding MOU with Stellantis last month, the partnership specifically targeting ‘synergies for product development in the US’. Today, Land Rover went so far as to reference new products ‘specifically designed for the US market’.
PB Balaji explained: “Apart from accelerating our existing offerings, we are also exploring new high-potential segments for our Defender brand, which will allow us to offer tailored luxury products and experiences for even more of our US clients. Our aspiration, in the coming years, is to grow our US business to the size of the entire JLR business as it exists today.” An ambitious target, certainly, one arguably made all the trickier by Jaguar’s hamstrung status as an EV-only brand. Whether that policy remains intact in 18 months time will likely prove a bellwether of JLR’s broader-minded strategy.
Salaries are a lot higher in the USA (I could be paid double what I earn in the UK as an engineer), plus there's a bigger market due to the higher population.
Time to sell lots of highly specified V8 Defenders and Range Rovers for $$$
Not unprofitable EVs to unprofitable markets regulating themselves out of relevance.
It's as if European politicians are determined to utterly destroy our car industries, economies and frankly our entire countries. When we bought our Defender, we went a bit mad with the spec because we thought it might have been our last chance to buy a diesel 4x4 (the most suitable powertrain for our needs). We actually wanted a proper 4x4 with off-road capabilities as well as long range comfort, not some watered-down plug-in crossover thing designed for the school run.I was recently speaking to a BMW dealer friend of mine in France and he was explaining how the insane French taxes have killed the market for performance cars or anything that's not just an ecobox. Our Defender would have been €125k there, plus an €80k "penalty" tax.
Not unprofitable EVs to unprofitable markets regulating themselves out of relevance.
this just looks like a opportunistic decision on JLR's part to cash in on fossils who cling to fossil based cars. 🦖
I work with China a lot, and go there a fair amount - Chinese people are very proud of Chinese cars. They already think they are the best EVs in the world. They don't aspire to Western cars in particular.
The government has no intention of letting Western brands gain strong positions in that market anymore, they want to dominate the domestic market and export like crazy.
I work with China a lot, and go there a fair amount - Chinese people are very proud of Chinese cars. They already think they are the best EVs in the world. They don't aspire to Western cars in particular.
The government has no intention of letting Western brands gain strong positions in that market anymore, they want to dominate the domestic market and export like crazy.
I think in Britain people want the cheapest.
The Defender also makes sense as it’s essentially an upscale Jeep Wrangler/ Ford Bronco which are also big hits here.
The cost of energy, caused primarily by government policy, is killing the elderly in their homes in both winter and summer (the latter due to us refusing to use AC in this country).
As for immigrants from certain countries being more murderous than the native population, that's shown by crime statistics from pretty much every European government that releases the stats (so not the UK, as statistcs are probably considered "racist" here)
. The question is whether you'll stick your head in the sand like an ostrich because you don't want to believe what's happening, or whether you'll admit the problem and do something about it.
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