Tentative plans for a super-frugal front-drive Jaguar are likely to be re-examined in light of the threat of increasingly stringent EU CO2 regulations, according to company insiders.
Although the firm is working flat out on bringing its new compact saloon and crossover models to market, even those frugal machines (the cleanest versions have a 99g/km target) might not be enough to lower Jaguar Land Rover’s fleet average to meet 2020 regulations — not to mention even stricter subsequent targets still to be set.
In the same way that BMW is rolling out a huge programme of economical front-drive cars under the BMW and Mini brands (which could account for 40 per cent of BMW’s overall output by the end of the decade), JLR is again eyeing a series of small front-drive models that could be sold in larger numbers.
The problem is that investment in what would certainly be a new, unique steel architecture would need to be huge, and justifying commensurately bold retail prices — and therefore decent profit margins — from small cars is notoriously difficult. Some, however, are arguing that JLR might have no choice but to build a rival to Mercedes’ new compact models and BMW’s upcoming front-drive 1-series additions.
This is because, by 2020, the EU wants to see the average CO2 output from a manufacturer’s model range pegged to just 95g/km. The laws were voted through the European Parliament in April. Although manufacturers who build less than 300,000 cars a year can apply a less stern metric, JLR is likely to be producing as many as 700,000 cars, thereby falling under the 95g/km legislation. And because JLR sells significant numbers of large SUVs, it is likely to seriously struggle to meet the targets.