As the car maker’s first wholly owned facility abroad, the factory will have a total investment of £240 million by 2020 and create 1000 jobs throughout the supply chain in Brazil, including just over 300 in the plant itself. There will also be 35 JLR dealerships.
The move by JLR reflects the brand’s importance in Brazil; Latin America is in its top 10 markets globally and it considers Brazil to be the most important. Land Rover is also the leading premium SUV brand in the country, accounting for a third of sales in the sector, according to JLR manufacturing boss Wolfgang Stadler.
Jaguar sales are also rapidly increasing in Brazil, and in the longer term it is possible that capacity at the plant could increase by introducing more shift patterns. Project manager for Brazil, Julian Hetherington, said: “Jaguar is coming from a small base in Brazil. In the longer term I think Jag will do very well [in Brazil] and then we’ll look at opportunities.”
He added that Brazil focused on smaller saloon cars, suggesting the XE might be one prospective model to be built there, as well as the F-Pace SUV. “The F-Pace is a more expensive product than XE, but I think it will do very well.”
This year JLR expects to produce up to 10,000 vehicles at the plant and will only carry out final assembly operation there. That means importing painted bodies from the UK as well as Ingenium diesel and petrol engines from its Wolverhampton manufacturing facility, with delivery times of seven to eight weeks. Hetherington added for every job in Brazil, in broad terms, there is one in the UK.