Land Rover gets Government Grant to Build Range Rover LRX

The UK Government has offered a grant of up to £27 million ($37.4 million) to help the Jaguar-Land Rover Group develop the production version of the LRX small SUV first shown in Detroit last year. It should be noted that the grant is from a separate scheme to the £2.3bn support package that the UK government is currently negotiating with automakers. Land Rover, which is now owned by India's Tata Motors, said that the Government's grant is an important contribution towards the overall £400 million cost of the LRX project.

"We welcome the Government's support for this project, which would form a key part of our future product plans and which we very much want to put into production," said Phil Popham, Managing Director of Land Rover. The company is due to make a final decision on the go-ahead of the LRX project at its plant in Halewood, on Merseyside, later this year.

The British automaker also revealed that while the LRX concept was shown as a Land Rover, the production version will go on sale wearing a Range Rover badge. The new small SUV is expected to share many components with the Freelander including the SUV's four-wheel drive system.