* New aluminium models aimed at mass market
* Seen tapping into growing premium crossover segment
* Sets up direct competition with BMW, Mercedes
By Rhys Jones
LONDON, Sept 10 Luxury carmaker Jaguar said it
would invest $2.4 billion in a new range of lightweight
aluminium sports sedans and crossover SUVs aimed at the mass
market, creating 1,700 jobs in a British economy showing signs
The spending is part of a move to launch more affordable
models from 2015 to emulate the success of lower cost luxury
vehicles made by its sister company Land Rover, and will better
position it to compete with its larger German rivals.
Jaguar, part of the Jaguar Land Rover (JLR)
group owned by India's Tata Motors, said the
investment could create a further 24,000 in supply chain jobs.
"The creation of 1,700 new jobs and £1.5bn investment by
Jaguar Land Rover is a great vote of confidence in the UK
economy," British Prime Minister David Cameron said on Twitter.
British car sales rose by 11 percent in August, the 18th
consecutive month of growth, in contrast to Germany, France,
Italy and Spain, which all suffered sales declines.
Britain's finance minister, George Osborne, said on Monday
that the UK had turned the corner and that an accelerating
economy vindicated his austerity programme.
JLR has roared to health in the four years since Tata Motors
bought the group from Ford for $2.3 billion.
It has escaped the cycle of plant shutdowns and falling
production at many European automakers by tapping into growing
demand for luxury cars in emerging markets.
Despite falling sales at home amid a sluggish Indian
economy, shares in Tata Motors surged as much as 10 percent to a
record high on Tuesday, outperforming a broader market
that was up more than 3 percent.
Also on Tuesday, Jaguar Land Rover said August sales rose 28
percent from a year earlier to 27,852 vehicles.
Carmakers around the world are expanding into so-called
premium "crossover" vehicles, seeking to tap demand for models
that combine the functionality of sport utility vehicles (SUVs)
with the comfort and performance of luxury cars.
Nearly one in every four premium vehicles sold last year in
Europe was a crossover or SUV, and the category continues to
grow, despite concerns about size and fuel consumption,
according to UK-based consultancy LMC Automotive.
Jaguar's new models will compete directly with the likes of
Germany's BMW and Daimler's Mercedes-Benz
which dominate the market for entry-level luxury vehicles.
Jaguar said cash would be spent to design systems to help it
introduce new one-piece "aluminium vehicle architecture".
The new models will be built on production lines previously
used to make Land Rover vehicles at JLR's plant in Solihull,
central England, where some 1,700 new jobs will be created.
A Jaguar sports sedan, due to be launched in 2015, will be
the first to feature the new technology. It will also be the
first car to use engines from JLR's new engine plant in nearby
Next up will be Jaguar's first ever sports crossover
vehicle, called the C-X17, also featuring an aluminium frame,
which is being showcased at the Frankfurt car show this week.
"The inherent flexibility of this all-new technology will
enable the Jaguar Land Rover business to not only enter but
aggressively compete in exciting new segments, creating new
markets for both brands," JLR's Chief Executive Ralf Speth said.