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Brazil a magnet for auto manufacturers: Land Rover and KIA with plant plans

Wednesday, October 24th 2012 - 05:44 UTC
Full article 37 comments

Jaguar Land Rover will likely decide before the end of this year whether to build a factory in Brazil, local President Flavio Padovan said on Tuesday. South Korea’s KIA Company is also considering the manufacturing plant option following the increase in import taxes. Read full article

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  • DanyBerger

    Meanwhile jobs are lost in UK Land Rover will crate thousand or jobs in Brazil.

    Another proof that KaMoron’s policies are promoting growth in any part of the world but UK.

    Poor Britons...

    Oct 24th, 2012 - 07:04 am - Link - Report abuse 0
  • Guzz

    Dany
    You are a fool, the side mirrors are still being produced in Manchester!!

    Oct 24th, 2012 - 08:23 am - Link - Report abuse 0
  • Anbar

    the UK is mostly a service-based economy, manufacturing shifted out a long time ago... http://www.thestudentroom.co.uk/wiki/Revision:Stages_of_Economic_Development

    fwiw its also not British - its owned by Tata (India).

    YMMV but I would have thought that the Brazilians are happy for the foreign investment and jobs this will create.

    Other countries in South American clearly didnt even get a look-in.

    Oct 24th, 2012 - 08:56 am - Link - Report abuse 0
  • Think

    I could be tempted to buy a “Back to Basics” Defender 90 made in Brazil.....
    I luuuuv that car!

    Oct 24th, 2012 - 10:55 am - Link - Report abuse 0
  • ChrisR

    My specialist car transport business was involved with LR at Solihull and Speke, Liverpool.

    We made a lot of money pulling the cars back from dissatisfied customers because of poor build quality. I stopped buying the Discovery when my last one suffered catastrophic engine failure on a motorway due to the timing belt failing, again incorrect assembly and it did it for me.

    TATA have made a huge success of the Jaguar arm, but seem to be struggling with the LR ‘we know better than the customers’ approach.

    Moving assembly to Brasil will give LR an opportunity to produce the cars in accordance with the design engineers wishes, for a change.

    As one LR executive said to me: we must get our quality better than this: he left the company shortly afterwards. It seems his view was not popular with Senior Management.

    Oct 24th, 2012 - 11:20 am - Link - Report abuse 0
  • BritInBrazil

    @1
    It has nothing to do with UK government policy.

    Brazil has steadily increased import taxes on imported cars, which make LandRovers produced in the UK very expensive. Most of the major auto manufacturers now have - or are setting up - manufacturing operations in Brazil... so Land Rover will face still price competition from lower-taxed Brazilian-produced products from other German, Japanese, Korean (and perhaps Chinese) firms. I'm not sure LR has an alternative but to set up in Brazil - where it currently outsells BMW - in order to secure a continued and growing demand for LandRovers. Bear in mind that some parts will likely continue to be designed and manufactured in the UK.

    Oct 24th, 2012 - 12:36 pm - Link - Report abuse 0
  • GeoffWard2

    good comments, Chris.
    JLR's future in Brasil is with LR, rather than going head to head with BMWb in the executive class. ... time enough for that. Beating off Mitsubishi is the future for its development in the continent.
    UK development and the Indian financing.

    Feel free to disagree; I'm no expert in this field.

    But I so wish that Brasil was evolving its own car/4x4 domestic industry to beat off the foreigners and win the South American market for itself.

    Oct 24th, 2012 - 03:23 pm - Link - Report abuse 0
  • ProRG_American

    It think that this is just lovely. This is good for Brazil, Mercosur, and Unasur. Lot's of auto parts work will be contracted out to Argentina, Uruguay and others in the region. With all of the slowdown in the world and the region, this comes along just nicely.

    Oct 24th, 2012 - 04:15 pm - Link - Report abuse 0
  • Conor J

    @1 The number of people employed by Jaguar and Land Rover has gone up enormously since the 90s.
    @2
    No you are a fool Guzz, Land Rover still build the vast bulk of their vehicles in the UK. While Jaguar build all their models in the UK. So what do you really know? Nothing.

    Oct 24th, 2012 - 04:21 pm - Link - Report abuse 0
  • ChrisR

    7 GeoffWard2

    The only comment I would make regards the development of 4x4s by Brasil.

    LR have taken many years to get to the latest luxury 4x4s from the original offering in 1970. This vehicle was a revelation of how comfortable travelling over ploughed fields could be, if a little basic.

    The Range Rover of today is a very sophisticated vehicle indeed and only by copying it could any other country even begin to match it. The upcoming Defenders are likely to be even more complex than the current model and that has had complaints that it can no longer be serviced by the farmers workshop (it has a CanBus) The reality is that new manufacturers could not.

    What they could do of course is to limit their initial attempt to a ‘Brasil version’ which could restrict the encroachment of electronics to fuel management only (it will need to be emissions compliant). The rest of the vehicle would still be serviceable by workshops with limited means because the fuel system would be Bosch and therefore supported by their network.

    LR may even wish to get on board with such an enterprise because it would not really compete with them for the first five years or so, and who knows what would be needed in Brasil by then?

    Oct 24th, 2012 - 04:24 pm - Link - Report abuse 0
  • Santa Fe

    1&2 same old incorrect Un researched rubbish from Duny and guzz.
    jag land rover are expanding hugely in uk, 1500 extra staff in design , and manufacturing assembles line 24 hrs 7 days a week pumping out the cars that all the world want to drive. a motorway junction near the design centre is being doubled in size to help all the thousands of extra workers.

    Jajaja anothermUK success... Try better trolls and do some research before spouting lies

    Oct 24th, 2012 - 04:29 pm - Link - Report abuse 0
  • Think

    (10) ChrisR

    First ever positive, interesting instructive post from Mr. ChrisR!
    I want Brazilandy!

    Oct 24th, 2012 - 05:02 pm - Link - Report abuse 0
  • ProRG_American

    Wasn't Rover owned by Ford and then sold to Tata Motors of India a coule of years ago?

    Oct 24th, 2012 - 05:26 pm - Link - Report abuse 0
  • Think

    A Brazilandy Defender 110....
    Eezi Awn on her roofrack...
    25 km x l. Diesel engine...
    Stainless Steel chassis...
    Gorilla glass windows...
    LED light system...
    No electronics...
    No A/C...

    Under 100,000 pesos...
    5 years guarantee...
    Can't wait for it...
    Where do I sign?

    Oct 24th, 2012 - 06:24 pm - Link - Report abuse 0
  • Guzz

    Now I'm not that sharp in the understanding of the market, but did Brazil's increase of import taxes just lead to a boom in local production?
    Don't fool yourselves with the free market Brits, you will only end up loosing your jobs...

    Oct 24th, 2012 - 06:29 pm - Link - Report abuse 0
  • Santa Fe

    13... And BMW.
    just hope the good news story continues, my village is full of range rovers and jags of the well paid Jag Landrover workers. ood bless Tata for saving it and investing in the great British brand.

    Oct 24th, 2012 - 06:37 pm - Link - Report abuse 0
  • ChrisR

    15 Guzz

    For all the quality problems that still plague the top end LT, there are many more that plague the top end Mercedes cars.

    It is a fact that LR needs other countries to produce cars it has / will easily have orders for and if not Uruguay, and with the 'union' problems and no spare production trained operators (plenty of non-productive government workers), why not Brasil?

    Oct 24th, 2012 - 07:11 pm - Link - Report abuse 0
  • Santa Fe

    Good news for brazil and the uk... Jealous trolls need not make more incorrect posts

    Oct 24th, 2012 - 07:49 pm - Link - Report abuse 0
  • Condorito

    15 Guzz, yes, but it's not a magic bullet. Some countries that export cars to Brazil may chose to retaliate by increasing (or maintaining) duties on Brazilian imports. What goes around comes around.

    Oct 24th, 2012 - 07:56 pm - Link - Report abuse 0
  • GeoffWard2

    ProRG @#8,
    I doubt if there will be a contract clause that autoparts for the Brasilian Land Rovers will be manufactured in Argentina. For so many reasons this is a non-starter.

    Hi, Chris,
    my 1970s LR was distinctly basic ....
    SWB Army, geared down for heavy towing, still with the bren brackets and fully camo-ed.
    Towed many a horse to shows all over the UK.
    “Memorrriiiieeesss”

    Oct 24th, 2012 - 08:02 pm - Link - Report abuse 0
  • Guzz

    Chris
    German cars are above all, no matter how much you like LR.
    I've been in many places, and a BMW or Mercedes is always seen as the best when it comes to innovation and technology. German machinery in general is world nr 1...

    Oct 24th, 2012 - 08:17 pm - Link - Report abuse 0
  • ProRG_American

    16 Santa Fe (#)
    You did not answer my question. Wasn't Land Rover owned by Ford I am almost certain that it was. I wonder why Ford would sell the Company, given that it had access to it's largest market.
    20 GeoffWard2 (#)
    Not quite. Brazilian factories can get their parts anywhere in Mercosur. If there are reasons it can't, name them.
    The Brazilian government clearly states that it wants no restrictions in subcontracting within Mercosur. This was one of the sticking points with BMW and why a deal almost fell through. It is certainly chepaer to subcontract
    within Mercosur than importing them from somewhere else. I remember when I was in Argentina around 2000, the was an effort to manufacture the brand in the country.
    I don't see any possible influence by the British Government. The company is not even majority owner by British capital. Besides, there are no commercial trade restrictions between the Britain and Argentina.

    Oct 24th, 2012 - 08:45 pm - Link - Report abuse 0
  • TipsyThink

    All cars' modéls' designs are térrible !

    I sold my Volkwagen hardly few months ago .

    I thínk a Japan are bétter.

    Oct 24th, 2012 - 09:30 pm - Link - Report abuse 0
  • Condorito

    I agree with Tipsy.
    German cars have a certain prestige but the Japs give more quality for your money. In the terrain we have here, nothing competes with Japanese (or UK if you have the money) off road.

    Oct 24th, 2012 - 10:02 pm - Link - Report abuse 0
  • Guzz

    Sure, Japanese cars are the best for their pricetag, but you can really call them luxury cars...

    Oct 24th, 2012 - 10:05 pm - Link - Report abuse 0
  • ProRG_American

    Basic Japanese models are a better buy and excellent quality. Japanese luxury models are exellent quality but more expensive.

    Oct 24th, 2012 - 10:07 pm - Link - Report abuse 0
  • Condorito

    ...and I would agree with prorg on that.
    ...if you are going to go exploring in northern Chile or down in deepest darkest Patagonia you are best in a Toyota Hilux or 4-Runner....luxury is not breaking down 500kms from nowhere.

    Oct 24th, 2012 - 10:22 pm - Link - Report abuse 0
  • Guzz

    I still think Germany produces the best engines, although I do agree Japanese cars are best value taking the pricetag into account. Also, as Condorito says, it very much depends on the usage of the car.
    Drive a Toyota myself...

    Oct 24th, 2012 - 11:00 pm - Link - Report abuse 0
  • Santa Fe

    22... Looks like you know that ford owned jag, its not a secret a simple google search would see that Ford owned Jag Landrover, they didnt invest and had volvo and others on their books at the time so sold it off.
    Tata have invested billions and reaped the rewards a now booming car company.
    Dont try to twist the story, simple facts are Jag Landrover is booming, factorys in UK are working 24/7 thousands of extra staff recruited to the design centre alone, a true UK success story with the backing of an Indian company that was willing to take a risk.
    As a great lady said, ''just rejoice at that''
    Try to google a negative story about Jag landrovers sales or UK jobs , I will await your troll results. jajajaja

    Oct 25th, 2012 - 07:21 am - Link - Report abuse 0
  • DanyBerger

    Meanwhile more UK jobs been lost in large amount...

    Ford will close plants in UK

    http://www.telegraph.co.uk/finance/newsbysector/industry/9633043/Ford-to-cut-1400-jobs-in-Britain.html

    http://www.telegraph.co.uk/finance/newsbysector/industry/9633043/Ford-to-cut-1400-jobs-in-Britain.html

    Oct 25th, 2012 - 05:34 pm - Link - Report abuse 0
  • ChrisR

    28 Guzz

    I don't ‘think’ or ‘guess’ at what cars are the most reliable. In the UK we have many warranty companies who keep records on all the repairs carried out to the cars they insure

    This year the list is (No1 = BEST)
    The most reliable used car brands according to What Car? and Warranty Direct
    1 Honda
    2 Toyota
    3 Lexus
    4 Suzuki
    5 Subaru
    6= Hyundai
    6= Mazda
    6= Mitsubishi
    9 Chevrolet
    10 Nissan
    11 Kia
    12= Ford
    12= Skoda
    14 Citroën
    15= Peugeot
    15= Daewoo
    15= Smart
    18 Mini
    19 Fiat
    20= Seat
    20= Volkswagen
    20= Volvo
    20= Porsche
    24 Vauxhall
    25 BMW
    26 Audi
    27= Rover
    27= Jaguar
    29 Mercedes-Benz
    30 MG
    31= Saab
    31= Chrysler
    33= Renault
    33= Jeep
    35 Alfa Romeo
    36 Land Rover

    I told you!

    Oct 25th, 2012 - 05:38 pm - Link - Report abuse 0
  • Think

    TWIMC
    Meanwhile............, in “Basket Case Argentina”, General Motors announces an investment of 450 million U$D.....:
    http://media.gm.com/media/us/en/gm/news.detail.html/content/Pages/news/us/en/2012/Oct/1024_GM_AR_Investment.html

    Oct 25th, 2012 - 05:39 pm - Link - Report abuse 0
  • Guzz

    Chris
    With all respect, do you use a list when you shag your good old woman as well? What's up with all your lists, seems they are you new bibles....

    Oct 25th, 2012 - 06:53 pm - Link - Report abuse 0
  • Santa Fe

    30... Ford!! the failed owners of jag Landrover, this article is about the iconic luxury car firm jag Landrover and its ever increasing demand for UK workers in design and assembly, it's booooming

    Oct 25th, 2012 - 07:29 pm - Link - Report abuse 0
  • ChrisR

    33 Guzz

    Lost the argument and changed the topic. Oh dear!

    Did you see where LR was and Mercedes? Did you not read my post properly, how I had given up buying Discovery’s due to serious problems?

    Have you ever driven a number of Mercedes models? If you go to Germany they use these things as taxis (albet the cheap, home market versions). Believe me, they are overpriced and unreliable to boot.

    Oct 25th, 2012 - 09:51 pm - Link - Report abuse 0
  • Guzz

    Chris
    You were having an argument? I thought we were talking about cars....
    I don't know what you prefer and see as a good car, but I know what I like in a car. Big diesel engines is part of my labour and Otto engines are interesting as well. When we talk engines, I can assure you I believe (argue that!) the Germans are the best. When it comes to cars, most cars of today fulfill the needs of us mere enthusiasts, and there is a wide range of models to choose from. It's all about personal liking, I'd say...

    Oct 25th, 2012 - 10:47 pm - Link - Report abuse 0
  • ChrisR

    @36 Guzz

    In English, the term ‘argument’ means a discussion. If you disagree vehemently with someone, you have a row.

    I never row with anyone because by then both parties have lost the plot. Prat-Junta is the classic example.

    I have an extensive knowledge of the car industry having been involved with it from design to having my own car sales business and I can summarise it with this joke:

    If it’s got tits or wheels, it’s going to be a problem!

    Teasing me with the superlative periods eh!

    BTW why use the Otto name for the ubiquitous 4-stroke petrol engine? Being a ship man I would have thought you liked 2-stroke diesels. Bet you can’t name a lorry (18 – 38 tonnes) that had this type of engine fitted not too long ago.

    Oct 26th, 2012 - 10:11 am - Link - Report abuse 0

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