Mark Milner
guardian.co.uk, Wednesday 11 March 2009
The government will help to fund Jaguar Land Rover's plans to build a green Range Rover, it was announced today.
It is contributing £27m towards the £400m cost of developing the new vehicle – based on Land Rover's LRX Concept car, first shown in Detroit last year.
Jaguar Land Rover still has to give the final go-ahead to the new vehicle, which would be built at the company's Halewood plant, but a decision is expected this year.
The funding comes under the government's grant for business investment scheme – separate from the £2.3bn automotive assistance programme that is meant to support the ailing car industry.
Lord Mandelson, the business secretary, said: "The government is fully committed to supporting the UK automotive industry as it moves to a lower-carbon future. This project aims to design and build a greener car in the UK, safeguarding vital skills and technology."
Land Rover's managing director, Phil Popham, said the company was keen to go ahead with the new vehicle, which would be the smallest, lightest and most efficient Range Rover ever produced.
"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, sustainable package," he said.
The LRX Concept had already shown how Land Rover was planning to respond to the needs of a changing world. "Despite the current economic challenges we remain committed to investing for the future."