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Jaguar SUV mule doing Ring testing in Evoque clothes

Jaguar has moved its Range Rover Evoque-bodied tests of the production C-X17 Concept from icy streets to the legendary Nürburgring, as work continues on the brand's first SUV.
Really, there's not a great deal of new stuff here. Based on the number plates, this is a different vehicle from the one we saw back in March, which we originally identified as the upcoming replacement for the Land Rover Freelander/LR2. The details, though, appear largely the same. The biggest distinction we can see between the March tests and this are the US-spec headlights, which add amber reflectors at their sides. Based on these shots, it does seem as if the C-X17 should be a fairly poised road vehicle, as the engineers hustle it around the 'Ring.
Of course, as soon our spies can capture images of a production-bodied C-X17, we'll be sure to pass those on to you. Until then, take a look up top for images of the Range Rover-bodied Jaguar as it tests at Germany's Nürburgring. You can also scroll down for our March images for the C-X17 mules testing on public roads.

Jaguar may join the FWD, small-car parade

Was it right for Chevrolet to detune the 1975 Corvette's base engine to 165 horsepower? Was Aston Martin wrong to make the Toyota iQ-based Cygnet? Is BMW crazy to be testing the new 1 Series with three-cylinder engines and front-wheel drive? It seems now, just as in the 1970s and 1980s, that emissions regulations and social considerations are driving some automakers to adopt unbefitting practices to maintain acceptance in the eyes of governments and consumers. Jaguar has jumped on the bandwagon, and is considering development of small, frugal, front-wheel-drive cars to help lower Jaguar Land Rover's average vehicle CO2 levels in light of tightening European emissions regulations, Autocar reports.
By 2020, the European Union expects the model range of every manufacturer to average 95 grams per kilometer, which is a new law passed by the European Parliament in April. Manufacturers who make more than 300,000 vehicles per year must meet these targets, and JLR is expected to be producing up to 700,000 vehicles per year by then. CO2 regulations after 2020 will only get stricter, as EU politicians already are talking about lowering CO2 levels to between 68 g/km and 78 g/km. (To put that in perspective, Autocar posits that driving a fully charged electric vehicle in Europe produces about 75 g/km when factoring in the power-generation infrastructure.)
Jaguar has some choices here, but so far they all have drawbacks. It could develop a new, compact chassis architecture for a line of compact vehicles, but the investment required for such a project could be prohibitively expensive. Jaguar has been looking into using the Land Rover Evoque platform for a small SUV, Autocar reports, but Land Rover brand manager John Edwards raises issue with such a plan, saying it may not be financially feasible.

European automakers gear up for Brazilian production

Brazil is the place to be, apparently. Toyota has been investing in the South American country, as has BMW, which announced a $261 million investment in October 2012, on the heels of an Audi factory announcement in San José Chiapa. The high-end immigration is only set to continue, as Mercedes-Benz and Jaguar-Land Rover have both announced plans to set up manufacturing operations there.
Mercedes is the big news here, as its new facility will see the German manufacturer invest 170-million euros for production of its next-generation C-Class and upcoming GLA-Class. "Brazil is an important future market. With our local production we accept the challenge and take on the competition," noted Andreas Renschler, Management Board member for Production and Procurement at Mercedes-Benz Cars and Mercedes-Benz Vans. Production is expected to begin by 2016.
Jaguar-Land Rover, meanwhile, isn't so concrete in its plans. The news of its investment in South America comes from a job posting for a plant quality manager in Brazil that was picked up by the UK's AutoCar. "Portuguese language skills will be definite advantage" for interested candidates, according to the job listing. The want ad follows on the heels of remarks by Jaguar Land Rover's Dr. Ralph Speth, who said there are "very intensive discussions" with Brazil's government. Unlike Mercedes, there's no mention of which vehicles will be produced in South America, although AutoCar thinks the Freelander, sold in the US as the LR2, is a leading contender.