After Nano, it’s JLR's turn to think about small cars

After the Nano, it's Jaguar-Land Rover's turn to think small. With a little help from the UK government. Thanks to an up to $37 
million grant offer from the British government, JLR is looking at making a brand new car based on Land Rover's acclaimed LRX concept vehicle.

First shown in Detroit Auto Show last year, the LRX concept is the "smallest, lightest and most efficient" vehicle Land Rover has ever produced. And now the UK government has pitched in, promising a generous grant if the concept becomes a road reality. This is separate from the $1.25 billion that JLR will reportedly get as part of the overall broader automotive support package, which has been announced by the local government.

When contacted, the JLR spokesperson said that the company is due to take a final decision on the project at its Halewood on Merseyside plant, later this year. Land Rover MD, Phil Popham, said: "We welcome the government's support for this project, which would form a key part of our future product plans and which we very much want to put into production."

Despite the grant, though, developing the new car will not come cheap. The overall project cost will be around £400 million and the grant covers less than 10% of that. But the grant offer made available under the UK government's 'grant for business investment scheme' will definitely help. JLR officials say, it will be an "important contribution towards the cost of the project."

Although the project has not yet got the final go-ahead from the company, JLR officials have confirmed that the new car will join the Range Rover family. "Our engineering feasibility study has shown that we can very successfully deliver Range Rover levels of quality,

drivability and breadth of performance in a more compact, more sustainable, package," said Mr Popham. "Feedback from the most extensive customer research we have ever undertaken also fully supports our belief that a production version of the LRX Concept would further raise the desirability of our brand and absolutely meet all those expectations," he added.

Lightweight and kitted out in sustainable technologies, the LRX Concept was Land Rover's answer to the current economic challenges offering better mileage, lower emissions and more thrifty design and engineering cues. But the new Range Rover will also offer excellent refinement complete with a new engine and transmission. That's crucial since it will help Land Rover achieve its goal of exceeding a 20% improvement in CO2 emissions.

The Halewood facility employs 2,000 people and currently produces the Land Rover Freelander 2 and Jaguar X-TYPE.