News : Brexit may force JLR into hybrids sooner…

Carole Nash Classic Insurance Specialists

Keith Adams

range-rover-hybrid-03

Last week’s historic Brexit vote looks set to have lasting implications for the UK motor industry, not least its largest and most important domestic manufacturer, Jaguar Land Rover. According to a former consultant to the company, the company is going to have to re-evaluate its range, with regards to the fuel consumption and emissions output and their standing in important export markets.

Jaguar Land Rover was the main beneficiary of a special agreement negotiated by UK officials that relaxed the carbon dioxide targets set for heavier cars by 2021. It has been suggested that the EU could overturn the exemption, leaving Jaguar Land Rover frantically looking to improve the efficiency of its range of primarily luxury cars. The former consultant told AROnline, ‘When I was working for JLR, I learned of a special EU exemption based on its volume,’ he said.

‘I have to think this may force Jaguar Land Rover’s hand and make them do one of two things in a hurry: (1) hybridize everything, or (2) launch a few smaller vehicles to rebalance the range away from the luxury end of the market.’ Company insiders had already said that a Brexit vote could cost as much a £1bn thanks to a decline in earnings and profits related to corrected exchange rates and weaker sterling.

Jaguar Land Rover is working hard on both hybrid diesel drivertrains, as well as all-electric solutions, and cars powered by the former options are well on track to get into production before 2021. However, there are concerns that its development timetable may be forced to change if the EU hastens the end of this exemption, given its haste in wanting the UK out of the Union.

According to a report by Automotive News, 
there would be few reasons to maintain the agreement. ‘Once the UK is outside the EU, why wouldn’t the French and Germans get rid of that amendment? There would be no one left inside the EU benefiting from that,’ John Leech, head of the UK automotive practice at accounting firm KPMG.

Jaguar Land Rover issued a statement following the referendum, stating, ‘we are a British business with a strong manufacturing base in this country, we call Britain home and we remain committed to all our manufacturing sites and investment decisions. We respect the decision of the British people and in common with all other businesses, JLR will analyse the issues arising from it – as of today, nothing has changed for us or the rest of the British automotive industry.’

The statement also said, ‘we will work hard with all parties to ensure that the importance of the British automotive industry is fully understood at every level of the negotiation process.’

Keith Adams

Keith Adams

Editor and creator AROnline at AROnline
Created www.austin-rover.co.uk in 2001 and built it up to become the world's foremost reference source for all things BMC, Leyland and Rover Group, before renaming it AROnline in 2007.

Is the Editor of the Parkers website and price guide, formerly editor of Classic Car Weekly, and launch editor/creator of Modern Classics magazine. Has contributed to various motoring titles including Octane, Practical Classics, Evo, Honest John, CAR magazine, Autocar, Pistonheads, Diesel Car, Practical Performance Car, Performance French Car, Car Mechanics, Jaguar World Monthly, MG Enthusiast, Modern MINI, Practical Classics, Fifth Gear Website, Radio 4, and the the Motoring Independent...

Likes 'conditionally challenged' motors and taking them on unfeasible adventures all across Europe.
Keith Adams

14 Comments

  1. With the new Slovakian factory the EU might not want to risk a policy potentially affecting a member country’s jobs, although it may mean a lot of SKD production of a wide range of models there.

    JLR’s policy of pursuing diesel hybrids will hopefully be more successful than Peugeot’s. It will be interesting to see if the UK government’s stance on diesel pollution changes post Brexit.

    Small cars – oh goody, another round of predicting Tatas rebadged as Rovers…

    • “JLR’s policy of pursuing diesel hybrids will hopefully be more successful than Peugeot’s” why bother? Gas turbines are the answer to hybrids if you want change, otherwise petrol, forget diesel there are very good reasons hybrids tend to be petrol

  2. Irrespective of any Referendum, all manufacturers are constantly monitoring and re-evaluating their range in an ever changing world. Foolish not to do so. For example, note Henry Ford stopped manufacturing the Model T a while back… Very wise… 😉

    Fat gut SUVs and people carriers for an increasingly obese car consumer base.

    Now that the world and his wife want some form of SUV/people carrier means of getting about, there are ever fewer choices of new cars appealing to me so I feel very unlikely to ever again buy a new car. I shall just have to creep about in my old MGs and Rovers… Good eh… 😉

  3. Isn’t this the reason manufacturers release down specced, CO2 specials?

    The Ingenium is modular, maybe they’ll launch a 1.5 3 cylinder version.

  4. Don’t forget the USA/Canadian markets with their tight NA standards for emissions and fuel economy that may further push the need for Hybrids in JLR’s model lineup.

  5. always thought it was a mistake dropping the Freelander. Maybe also a move below the XE? Would that be aJag or dare I say it, a new Rover? Rover by Jaguar…

    • Our State Broadcaster still presents their version of the news always with their “We’re cleverer than you plebs” negative slant to the majority of voters wanting severance from the uber-parasitic, declining and failing so called European Union. Stand by for further repeated “Told you plebs so” stances at every opportunity with items that suit their continuing negative agenda.

      All it needs is for Trump to become President come November and their cup will runneth over… 🙂

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