Jaguar Land Rover to build plant in Brazil ?

Jaguar Land Rover will invest about 1 billion reais ($436.9 million) to build a new manufacturing plant in Brazil's state of Rio de Janeiro, three government sources told Reuters.

Production at the factory, to be built in the city of Itatiaia, could begin as early as 2015, and an official announcement is scheduled for Dec. 3, said one of the sources, who is not authorized to speak on the record.

"Everything is very advanced with only minor details to be worked out," said Luiz Carlos Ferreira Bastos, Itatiaia's mayor. The factory could employ 500 to 700 people, he added.

The two other government sources, both with Rio de Janeiro's state government, confirmed that Land Rover plans to build in Itatiaia, although they declined to be named because they are not authorized to speak to the media.

Earlier this month, Jaguar Land Rover, owned by India's Tata Motors, said it plans to expand manufacturing and increase production in markets outside its UK home base, particularly in China and Brazil.

The decision comes after rival brands BMW, Mercedes-Benz and Audi all decided to build plants in Brazil, spurred by government moves to raise taxes on imported vehicles, while offering tax breaks for automakers that increase domestic investments.

"Jaguar Land Rover confirms that it is carrying out a study on the installation of a manufacturing unit in the country," a company representative told Reuters on Monday. "At this time, we can not confirm the size of the investment or other details of the study."

Negotiations started at the beginning of this year, one of the sources said, with Rio de Janeiro's state government offering tax breaks and fiscal incentives to help attract the company.

From January through October, Land Rover sold 8,920 automobiles in Brazil, trailing BMW and Mercedes-Benz, which sold 11,520 and 10,510 cars, respectively, according to local auto dealers association Fenabrave.

REPORT HERE