UK Gives Money to Land Rover to Build LRX Compact SUV

Supporting ailing automakers is one of the main tasks for governments across the world since the economic recession forced them to reduce workforce and save costs in every single area. Jaguar Land Rover is no exception to the rule and, following several cost-cutting measures announced in the United Kingdom, the British government today announced it will provide up to 27 million pounds to Land Rover to help it produce an all-new car that would better match the current market conditions.

It may seem like Land Rover is aiming to advance the LRX concept into mass-production, especially thanks to the positive feedback after the official unveiled at the 2008 Detroit Auto Show. However, expect a more fuel-efficient and lighter model that would be concentrated on reducing both fuel consumption and CO2 emissions.

Production of the new model will likely take place at Land Rover's plant in the UK that currently employs a total workforce of approximately 2,000 people. The facility currently builds the Freelander and the Jaguar X-Type.

Getting back to the LRX, the model was displayed for the first time in 2008 at the North American International Auto Show. The concept was powered by a 2.0-liter diesel and hybrid powertrain that was also able to run on biodiesel. This type of alternative fuel helped the car achieve a fuel consumption rating of 60 mpg (4.7 liters/100 km) while CO2 emissions reached 120 grams per kilometer.

Obviously, the mass production model will be slightly different from the concept but motorauthority.com writes that it will rely on lightweight materials such as carbon fiber and aluminum. Start-stop systems for reduced fuel consumption may also be installed onto the new LRX.