Jaguar Land Rover is in talks with Nato countries about selling them the newly revamped Defender military vehicle, as the UK-based carmaker seeks to tap into Europe’s defence spending boom. It is also among carmakers bidding for a UK defence ministry contract worth £900m to replace an ageing fleet of Land Rovers that have been out of production since 2016, competing with General Motors and the UK’s Ineos. JLR, owned by India’s Tata Motors, has set up a new Defender defence division to explore new partnerships to supply vehicles for people and equipment transportation to defence sectors around the world.
The carmaker is trying to expand beyond its relationship with the British armed forces to exploit a spending boom by Nato countries racing to rearm, as it faces weaker demand elsewhere coupled with higher costs. JLR insisted that the move, which was first reported by the Financial Times, was not related to its planned 4,000 job cuts globally, as part of an effort to save £1.7bn. It is slashing costs as it struggles with tough trading conditions, Donald Trump’s tariff wars and the fallout from a damaging cyber-attack last year.
As he unveiled three new variants of the Defender Wolf Series II, the next-generation military vehicle, Patrick McGillycuddy, the Defender managing director, said: “Through our newly established Defender defence division, we will offer Defender Wolf Series II to defence organisations worldwide, while also bidding for the UK Ministry of Defence light mobility vehicle tender.” He said the new 4x4s were “exceptionally robust and versatile,” and added that their lightweight aluminium monocoque construction, with a stiffer body structure, means they can be adapted to the “wide range of roles and operational requirements demanded by military organisations”. The new Defender series is designed and engineered in the UK, with an engine built in Wolverhampton. JLR also wants to break into the $80bn (£59bn) US pickup truck market with a local version of its Defender vehicle.
The Defender pickup will be built in the US through a joint venture with Chrysler carmaker Stellantis, the Sunday Times reported at the weekend. It is the most high-profile UK carmaker to pivot the newly booming defence sector as manufacturers grapple with a transition to electric vehicles and rising competition from Chinese rivals. Last week, Volkswagen struck a deal to sell its Osnabrück factory to Israel’s Aurelius Capital and VW’s second-biggest shareholder, its home state of Lower Saxony, in a move labour officials said could save about 1,400 of the site’s 1,800 jobs.
The site would switch production from cars to heavy-duty trucks that carry anti-missile systems for the maker of Israel’s Iron Dome, Arrow and David’s Sling air and missile defence systems. Renault is repurposing part of its Le Mans chassis plant in western France to make up to 600 drones a month for the French ministry of defence.
Extract — continue reading at the source.
