Land Rover ’s CEO, Geoff Polites, who also controls Jaguar , hinted that the British go-anywhere 4×4 company is considering development of a vehicle smaller than the LR2 (called Freelander outside of the U.S. and Canada) in order to comply with upcoming European Commission emissions regulations.
LR2/Freelander is the smallest vehicle Land Rover makes, but it emits too much carbon dioxide to meet European automaker average regulations, according to the Financial Times. Polites said that, at Land Rover, emissions regulations are “high on our radar” and he said that “downsizing and smaller, more fuel efficient vehicles” were likely part of the solution for Land Rover.
Ford made it clear that it’s looking to sell both Land Rover and Jaguar , but neither Polites nor Ford would discuss the pending sale. Last week, Ford’s European advisors – Goldman Sachs, Morgan Stanley and HSBC – started contacting private equity groups.
Despite high gas prices and increased consumer and government concern over environmental issues, Land Rover sales were up 9 percent globally in the first half of the year. The normally fickle U.S. market saw an 8.1 percent increase.
