A Cheap Land Rover For Americans Could Just Be A Really Expensive Jeep
Jaguar Land Rover wants to build vehicles in the United States.
The motivation is driven by the fact that local assembly offers a direct route to avoid punishing import tariffs. But building cars stateside independently is an expensive proposition, which is why JLR is cozying up with Stellantis to create unique, U.S.-focused Defender models built on American soil.
JLR Chief Financial Officer Richard Molyneux laid out the strategy during an investor call, following the initial memorandum of understanding signed between the two automakers earlier this year. A formal agreement is anticipated by the end of the year, opening the door for future Defender models to be built inside Stellantis manufacturing facilities across North America.
Molyneux said that current sales volumes for the Slovakia-built Defender—around 30,000 units annually in the U.S.—are too tiny to justify investing in standalone local production. Even scaling to 50,000 units wouldn't make the math work for a dedicated factory. The Defender is subject to a 25% import tariff rather than the 10% figure tacked on to UK-built JLR models.
Every vehicle JLR currently sells in North America is imported, leaving the automaker vulnerable to foreign exchange swings and import duties. Building in the U.S. creates a natural hedge and insulates the automaker's highest-margin market from trade volatility.
Instead, JLR wants to expand the Defender badge into new segments using shared Stellantis architecture and factory capacity. Speculation says Land Rover is looking for a rugged, back-to-basics off-roader designed to directly challenge body-on-frame favorites like the Jeep Wrangler, Ford Bronco, and upcoming Scout SUVs. It's possible this new American-spec Defender could share a BOF platform with the next-gen Wrangler, Gladiator, and Ram Dakota.
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, went over the wall during the Rolex 24, and wrenched in the intense IndyCar paddock.
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JLR's reliability is already sketchy as it is.
Now they want to join forces with Stellantis, of all options?
What could possibly go wrong?
Coupled with an even higher priced Stellantis based product...the mind reels.
Why is it the "American Way" to take two companies that have poor to marginal products, merge them, and expect the results to be better? Land Rover and Lexus, maybe, but Land Rover and Stellantis? The end of the assembly line should just terminate in a recycling yard and save the guilty parties time, effort, and money.