Jaguar Land Rover to hire production managers to assess plant viability in Brazil

Article by Anita Panait, on October 15, 2013

Jaguar Land Rover is looking for managers with manufacturing experience in Brazil to help it arrive at a decision on whether it should build a facility in the country. A spokesman for the carmaker told Automotive News Europe that they are looking at the possibility of building a plant in Brazil, and they are recruiting people with local knowledge to assess the potential.

Jaguar Land Rover Marketing Director Phil Popham told Automotive News Europe at the Frankfurt Auto Show in September that the company is in talks with the Brazilian government about the possibility of setting up a site in the country, which will depend on the complexity of taxation rules, particularly over foreign carmakers. Jaguar Land Rover is the lone carmaker seeking to respond to tax measures that benefit local automakers.

Last month, German premium carmakers Audi and Mercedes-Benz disclosed plans to build cars in Brazil. In 2012, BMW confirmed plans to set up a new site in the country.

According to IHS Automotive, the Brazilian premium vehicle market is expected to triple to around 100,000 over the next five years. Carmakers producing in Brazil could take advantage of a lower a federal excise tax on manufactured products -- known in the country as IPI -- and gain import credits, IHS Latin America specialist Guido Vildozo told Automotive News Europe.

This means that any carmaker that builds locally will gain significant competitive advantage over automakers that don't. The Land Rover brand currently commands 40 percent of the premium SUV market in Brazil, with the Range Rover Evoque as its best-seller. [source: automotive news - sub. required]

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