Jaguar Land Rover readies 2021 Range Rover amid lockdown delays

The fourth-generation Range Rover has been a very strong product for the company, selling nearly 53,000 units globally last year, only a fraction down on sales in 2018. The Mk5 will again be sold in standard and long-wheelbase forms, but that’s where the direct comparisons with the current car end.

The new model will be the first Land Rover built on an MLA structure that promises to transform JLR’s competitiveness. The new platform is expected to deliver a reduction in warranty and reliability problems as well as allowing software-over-the-air (SOTA) updates. MLA can also accommodate conventional internal combustion engines, plug-in hybrid and battery-electric powertrains.

Other advantages of the MLA’s SOTA technology could include reducing the need for dealer recalls, predictive servicing that allows dealer visits to be automatically scheduled and even user-based insurance schemes. Data generated by real-world use of MLA-based vehicles will also help inform future model development, say insiders.

Unlike today’s ageing Range Rover architecture, the new MLA platform has been designed from the outset as a ‘flex-fuel’ components set. Autocar understands the Mk5 Range Rover will make use of a BMW-sourced petrol V8 – which will be aimed at markets such as the Middle East and California – but little other information has leaked about the other combustion engine options.

It’s known that JLR and BMW are working on developing electric motors that will be used by the MLA-based vehicles and are expected to be built at JLR’s Ingenium factory near Wolverhampton.

The engine facility’s switch, at least partly, to the production of electric drive modules (EDMs) suggests that JLR might adopt other BMW-sourced engines for the MLA platform. Considering the huge investment coming up for the planned Euro 7-compliant diesels, oil-burning engines could be a strong contender for a co-operative project between JLR and BMW. But the firm is unlikely to abandon its newly launched mild-hybrid Ingenium straight-six petrol engine so soon, so expect that to also feature at the car’s launch.

Plug-in hybrid versions of the Mk5 Range Rover are expected to have one electric motor on the rear axle as well as another embedded in the transmission. It has been claimed that the electrically driven rear axle will further improve the car’s off-road ability, because of the ability to finely meter out the torque.

A pure-electric version of the Range Rover is also being considered. The model could have a battery of up to 100kWh and electric motors directly driving the front and rear wheels. However, it’s expected that any electric Range Rover would be a limited-production model targeted at city users in Asian markets. The upcoming MLA-based ‘Road Rover’ crossover is likely to be the lead Land Rover electric car.

The introduction of the MLA components set, however, and the need to completely refit the Solihull and Castle Bromwich factories, is costing JLR a considerable amount of money.

According to records of a meeting between JLR chief financial officer (CFO) Adrian Mardell and a number of investment banks on 31 January this year, the investment in the MLA last year was a massive £2.5 billion, although it was significantly higher the year before.

Between October and December last year, JLR spent £892 million on new investments – slightly more than the cash profit made on vehicle sales over the same three-month period.

The rolling global shutdown in the wake of the coronavirus pandemic isn’t good news for JLR, which had been greatly improving its financial position until the shutdowns in March.

Although overall vehicle sales had fallen slightly in the last three months of last year (Jaguar was down 21% year on year and Land Rover up 6%), overall revenue was up and the company’s Project Charge and Charge+ strategies had made good headway in reducing costs. The upshot was that the company made a £372m profit between October and December.

Sales were also picking up again in China after the well-publicised troubles in 2018 and 2019. Chinese sales jumped 24% in the last three months of last year, helping to offset a 10% fall in the EU.

Sales were down 12% in the UK, but this was explained by some of the company’s lower-margin models being removed from the market, including some variants of Jaguar’s saloon models and the E-Pace.

According to Mardell, the European sales fall was mostly because sales of the Jaguar I-Pace EV fell by 2500 in the Netherlands following taxation changes by the government.