Jaguar Land Rover is teaming up with Stellantis to produce Defender models tailored for the U. S.
market.
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The move aims to reduce tariff costs and currency exposure, as JLR seeks to expand its presence in North America.
Partnership Details
JLR CFO Richard Molyneux confirmed the plan during an earnings call on August 13.
The companies signed an exploratory agreement in May, with a memorandum of understanding expected by year's end.
Production would take place at Stellantis plants in the U. S.
, but the lineup will change.
Molyneux noted that JLR sells about 30,000 Defenders annually in the U. S.
, which is too few to localize existing models efficiently.
Instead, new Defender-branded vehicles will be developed for segments JLR doesn't currently occupy.
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A likely candidate is a body-on-frame off-roader sharing underpinnings with the Jeep Wrangler.
This would give JLR a credible entry below the current Defender, competing with the Wrangler, Bronco, and Scout.
Currently, JLR pays 10% tariffs on UK-built vehicles and 15% on EU-built ones.
Local production would avoid these costs and reduce exposure to dollar-pound fluctuations.
North America is JLR's largest market, accounting for 28% of global sales in the last fiscal year.
Its share rose to 34% in the quarter ending June 30, while China declined.
JLR aims to grow its U. S.
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business to the size of its entire current operation, and a locally built Defender is a key step.
