Jaguar Land Rover is considering leaning on Stellantis to expand its Defender brand in the U.S. while lessening the impact of U.S. tariffs.
The details: The British automaker, which signed a memorandum of understanding with Stellantis in May to explore product and technology collaborations, plans to partner with the automaker to build Defender-branded vehicles, said JLR CFO Richard Molyneux, per Motor1.
The goal is to expand JLR’s SUV offerings in the U.S. with new vehicles targeting new market segments while leveraging Stellantis’ production capabilities.
If the plan moves forward, U.S.-built Defenders would sit alongside other vehicles in JLR’s U.S. lineup, including imported Range Rover and Jaguar models.
The British automaker currently sells about 30,000 Defenders in the U.S., with the SUVs manufactured at JLR’s facility in Nitra, Slovakia.
What they’re saying: JLR “can never localize efficiently at 30,000 units, or even at 50,000 units,” Molyneux told investors, discussing the Stellantis-partnership production strategy, per Motor 1.
But expanding the Defender lineup could give JLR dealers more products to compete in additional SUV segments, creating new opportunities to broaden the brand's customer base and generate incremental sales.
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Between the lines: One of the biggest potential payoffs of the partnership for JLR is reducing its tariff exposure, underscoring a broader industry trend as automakers respond to mounting pressure to localize vehicle production in the U.S.
JLR, which is subject to a 10% U.S. tariff on auto imports, has reportedly paid £410 million ($520 million) in additional U.S. import tariffs since President Trump enacted the measure.
The Coventry-based company saw its profits plunge 99% annually due to tariffs and a cyberattack, while first-quarter profits fell 69%.
Bottom line: Partnering with Stellantis could provide JLR with the scale needed to make U.S. production economically viable, while reducing its exposure to tariffs that have already taken a significant toll on the automaker's profitability.
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