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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.

Environmental group accuses BMW, JLR of link to deforestation in Paraguay

ASUNCION, Paraguay — Environmental group Earthsight said on Wednesday it has linked some of Europe's largest carmakers to the deforestation of the Chaco, a dry forest region of Paraguay home to jaguars and one of the last uncontacted indigenous groups in the world. The group said in a report that livestock companies have illegally logged lands of the Ayoreo Totobiegosode indigenous ethnic group, some of whose members live in voluntary isolation. The livestock skin is used in leather upholstery of luxury vehicles sold by high-end European auto brands including BMW, Jaguar and Land Rover, the group said. UK-based Earthsight said it had made covert visits to tanneries that bragged about supplying the raw material to the luxury car brands. "BMW is using hides sourced from two slaughterhouses processing cows from ranches responsible for illegal [logging] in the Ayoreo Totobiegosode's forests. Jaguar Land Rover didn't dispute sourcing from a Paraguayan tannery that processes hides from another slaughterhouse doing the same," the report said. Jaguar Land Rover said in a statement to Reuters it had found no evidence to verify Earthsight's claims. It said its European suppliers assured sustainability. "We continue  our drive for further transparency and, in this case, the leather supplier in Europe verifies with each raw material supplier that no rural property that directly supplies it is involved in illegal deforestation," the automaker said. BMW did not respond to a request for comment on the Earthsight investigation. Paraguay exports about 50,000 tons of wet-blue leather (tanned, but not dried, dyed or finished) a year, and almost two-thirds of those shipments are bound for Europe, according to the report. Automakers say that leather is a byproduct of the far larger meat industry and high-end cars constitute a comparatively small market niche. But indigenous leaders say deforestation driven by growth in beef and leather exports is encroaching on their territory and destroying their way of life. "As deforestation advances with extensive cattle ranching, they are being imprisoned, they are disappearing," Taguide Picanerai, a spokesman for the Ayoreo community in the Alto Paraguay department, northwest of Asuncion, told Reuters. The region is home to some of the world's highest rates of deforestation, Earthsight said.   Green BMW Jaguar Land Rover

Land Rover could build a baby Defender on a platform sourced from BMW

The collaboration between BMW and Jaguar-Land Rover started out small, it was originally limited to motors for electric cars, but it might not stay that way for long. The Tata-owned British sister companies will allegedly rummage through Munich's sizable parts bin to build nearly half a dozen cars scheduled to come out during the 2020s. According to a report by British magazine Autocar, Jaguar has started designing two small cars that will join its growing family of Pace-badged soft-roaders. They'll be new additions to the firm's portfolio, not replacements for existing cars. One will be a regular crossover, while the other will be a swoopier, form-over-function four-door model ostensibly marketed as a coupe. Both will slot at the very bottom of the Jaguar portfolio, below the already pretty small E-Pace, in a growing market segment where the competition is fierce, and profit margins are thinner than an i3's tires. Here's where BMW apparently comes in. Instead of developing a platform from scratch, the two crossovers could ride on the hybrid-ready, front-wheel drive FAAR architecture found under the third-generation 1 Series hatchback and the upcoming 2 Series Gran Coupe. If we believe an earlier report claiming Jaguar and BMW will also share engines, most of the hardware found under the sheet metal will have German genes. All-wheel drive will certainly be available, and it could also come from BMW. The same platform -- and, presumably, the same engines -- would provide the basis for a Land Rover-badged model positioned in the same segment. Autocar learned it will be to the next-generation Defender (pictured) what the Mercedes-Benz GLB is to the G-Class. Some key design cues will carry over, but the two models will share absolutely nothing under the sheet metal. The soft-roader could resurrect the Freelander nameplate when it goes on sale during the 2020s. Looking even further ahead, the front-wheel-drive platform the next Mini Countryman and X1 will utilize could find its way under the replacements for the next Range Rover Evoque and Discovery Sport. These plans could very well change; the Evoque and the Disco Sport barely entered their second generation, so they're not due for a replacement until the second half of the coming decade. While neither company has confirmed or denied the report, the partnership makes sense from a business standpoint.