Luxury carmaker Jaguar, in a break with tradition, will invest $2.4 billion to develop a sports crossover vehicle, a relatively new niche that is designed to blend aspects of an SUV and full-size car.
Shares of Jaguar's parent, India-based Tata Motors (TTM), were up 6% in afternoon trading in the stock market today after the company announced the move.
Jaguar showed off its sports crossover concept, the C-X17, at a Frankfurt, Germany, trade show.
Jaguar's concept car, the C-X17. Getty Images View Enlarged Image
The C-X17, which will be built on a new aluminum frame, is slated to come to market in 2014.
Jaguar Land Rover, two vehicle brands Tata acquired from Ford in 2008 for $2.3 billion, also reported sales climbed 28% in August.
The new expansion of the Jaguar line is part of the company's strategy to launch more affordable vehicles starting in 2015 to compete with entry-level luxury automakers BMW andDaimler AG's (DDAIF) Mercedes-Benz brands.
The company said its lightweight aluminum frame will boost the vehicle's gasoline mileage.
The new vehicles will be built on production lines in England previously used to make Land Rovers.
Tata was upgraded by Alpha Street Research to buy from hold. Read more....
Automakers were up overall in midday trading, with Ford Motor (F)climbing 1.5%, General Motors (GM) gaining 2% and Toyota Motor (TM) edging up less than 1%.
Tesla Motors (TSLA), which has vaulted to prominence selling luxury electric cars under the Roadster and Model S brands, is also aiming for the mid-range market.
Tesla, which is on the IBD Leaderboard list of top-rated stocks, has talked about a car known as BlueStar that would compete with BMW and Mercedes-Benz. It would have a starting price of about $30,000 vs. the $62,500 base price for a Model S.
Tesla shot up 3%.
Read More At Investor's Business Daily: http://news.investors.com/business/091013-670463-tata-stock-jumps-amid-new-market-plan.htm#ixzz2frG70Otw
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