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Jaguar Land Rover begins output at first overseas engine plant
Reuters | 2017/7/25

LONDON -- Jaguar Land Rover opened its first overseas engine plant on Friday, picking China for the investment. 

Britain's biggest carmaker, which already operates an assembly plant in China through its partnership with Chery Automobile Co., said the new factory is part of a 10.9 billion yuan ($1.6 billion) investment. 

"The new engine plant demonstrates Jaguar Land Rover¡¯s long-term commitment to the Chinese market, providing customers with an exciting range of vehicles and powertrain options, as well as to its joint venture," JLR said in a statement. 

The factory in Changshu will make a new Ingenium 2.0-liter four-cylinder gasoline engine. 

The company¡¯s assembly plant in Changshu opened less than three years ago. 

The Range Rover Evoque, Land Rover Discovery Sport and a long wheelbase Jaguar XFL are built there. The Jaguar E-Pace compact crossover will be added next year. 

China was JLR's fastest growing market in 2016, accounting for 20 percent of global sales. 

Jaguar Land Rover, owned by India's Tata Motors, is rapidly expanding production as it adds new models. In 2015, the company decided to build a major new plant in Slovakia, rather than expand operations in Great Britain. 

This month, the automaker said it would build the new E-Pace at Magna Steyr in Austria and in China -- the first Jaguar car made for global sale to be built outside Britain. 

Like much of the British car industry, Jaguar Land Rover is worried that Brexit could leave its light-vehicle exports facing lengthy customs delays and tariffs up to 10 percent, jeopardizing the viability of production in Britain.

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