JLR has been writing tariff checks worth hundreds of millions of pounds a year just to sell Defenders in America. That stops if this deal works. Jaguar Land Rover and Stellantis signed an exploratory agreement in May to build Defender-branded vehicles inside US Stellantis plants — new models, not the current Defender — and JLR’s CFO Richard Molyneux told investors a formal manufacturing contract is being targeted before the end of 2025.
The JLR Stellantis Defender plan isn’t about taking the current Defender and assembling it somewhere in Ohio. These will be completely new vehicles, built for American buyers, sitting in a completely different part of the market than the Defender most people know today.
JLR Was Losing Too Much Money on Tariffs
Every Defender that JLR ships from its factory in Slovakia to an American dealership gets hit with import taxes. Those tariffs have been costing JLR hundreds of millions of pounds every year. Add currency swings between the British pound and the US dollar on top of that, and the financial pain adds up fast.
JLR chief financial officer Richard Molyneux told investors the company signed an early-stage agreement with Stellantis in May. The two companies are exploring what Molyneux called “complementary capabilities” in vehicle and technology development in the US. He said the plan is expected to cover Defender-branded vehicles built inside Stellantis plants in America, with a proper manufacturing deal expected to be signed around the end of this year.
The reason JLR isn’t just moving its current Defender production to America comes down to one number. JLR sells around 30,000 Defenders a year in the United States. Molyneux said flat out that JLR “can never localise efficiently at 30,000 units, or even at 50,000 units.” Building a whole new production line for that kind of volume doesn’t make financial sense. Using Stellantis plants that already exist and already build trucks and SUVs does.
What the New Defenders Will Look Like
Nobody outside the two companies knows exactly what the JLR Stellantis Defender vehicles will be, but there are strong signals pointing in one direction. These new models will most likely sit on a Stellantis truck or SUV platform — probably something closely related to the Jeep Wrangler — rather than JLR’s own EMA platform.
JLR’s EMA platform already has a full schedule. The new Range Rover GT uses it and is still going through final testing in the UK before a proper launch later this year. That platform isn’t free to be shipped off to an American production deal.
A Jeep-related platform for the JLR Stellantis Defender products actually makes a lot of sense. Jeep builds rugged, truck-based SUVs at high volume for exactly the kind of American buyer JLR wants to reach. The engineering is already proven. The safety testing is done. Dealerships across America already know how to service these kinds of vehicles. Starting from scratch on a brand new JLR-specific platform for a US-only product would cost more money and take more time — two things this deal is designed to avoid.
Molyneux described these future products as “new vehicles, new segments” under the Defender name, aimed directly at American customers. That language suggests JLR isn’t just making a slightly different Defender. It’s going after parts of the American truck and SUV market where it has never competed before.
Why This Deal Works for Stellantis Too
The JLR Stellantis Defender arrangement gives Stellantis something valuable as well. Stellantis already runs a large network of American factories, including its Belvidere, Illinois plant which is being prepared for future Jeep models. Adding a partner brand like Defender to one of those plants means better use of factory capacity and an extra revenue stream from a well-known luxury nameplate.
Stellantis has its own financial pressures right now, and filling factory space with JLR Stellantis Defender production keeps workers busy and lines running. That’s not a small thing for a company managing multiple brands across multiple plants.
For JLR, the benefit is even clearer. Building vehicles inside America puts them behind the tariff wall entirely. No import taxes on American-built products. No currency risk on vehicles sold in dollars and built in dollars. The company gets access to Stellantis manufacturing expertise and truck platform know-how without spending billions to build a factory from scratch.
US Buyers Could Finally Get a Defender at Wrangler Money
If the JLR Stellantis Defender deal moves from the current exploratory agreement into a full manufacturing contract — which Molyneux said is targeted for around the end of this year — American buyers could eventually find Defender-branded SUVs sitting on showroom floors at prices that compete directly with the Jeep Wrangler and Ford Bronco.
That’s a market worth fighting for. The Wrangler and Bronco together sell hundreds of thousands of units a year in the US. JLR has never had a product that could genuinely compete at that volume or at those price points. A Stellantis-platform JLR Stellantis Defender product, built in America, sold without tariff markups, could change that.
The imported Range Rover and Jaguar models aren’t going anywhere. Those vehicles serve a different buyer at a different price point and JLR will keep bringing them over from Europe. The American-built Defender products sit alongside that lineup, not instead of it. JLR gets to keep its European luxury identity and build something new and more accessible in America at the same time.
What Still Needs to Happen
The current agreement between JLR and Stellantis is still exploratory. A memorandum of understanding is not a production contract. Both companies need to agree on which plant builds these vehicles, which platform they use, how the Defender brand gets applied to what will essentially be Stellantis-engineered products, and how the two companies split costs and profits.
That’s a lot to work out before the end of this year, which is when Molyneux said JLR wants a specific manufacturing agreement in place. Deals like this have fallen apart before when the details get complicated. The Jeep Wrangler platform connection is still speculation from outside analysts — neither company has confirmed exactly which architecture the JLR Stellantis Defender vehicles will use.
What is confirmed is that JLR sees American manufacturing as the only realistic path to competing properly in the US truck and SUV market. Paying hundreds of millions in tariffs every year while watching Jeep and Ford sell rugged SUVs to American buyers at prices JLR can’t touch isn’t a strategy. This deal, if it closes, is.
JLR Stellantis Defender — Frequently Asked Questions
What is the JLR Stellantis Defender deal?
Jaguar Land Rover and Stellantis signed an early-stage agreement in May to explore building Defender-branded vehicles inside Stellantis factories in the United States. JLR wants American-made products to avoid import tariffs and currency risks. A full manufacturing agreement is expected around the end of this year.
Will these new Defenders replace the current model?
No. The American-built JLR Stellantis Defender vehicles will be completely new models aimed at new segments of the US market. The existing Defender, made in Slovakia, continues as it is. Imported Range Rover and Jaguar models also stay unchanged.
What platform will the new US Defenders use?
The vehicles are widely expected to use a Stellantis truck or SUV platform related to the Jeep Wrangler. JLR’s own EMA platform is already committed to the upcoming Range Rover GT and isn’t available for this project.
Why can’t JLR just build the current Defender in America?
Volume. JLR sells around 30,000 Defenders a year in America. CFO Richard Molyneux said the company can’t localise production efficiently at 30,000 or even 50,000 units. Using existing Stellantis plants with established truck production capacity makes far more financial sense than building a dedicated JLR factory for that volume.
How does this deal help Stellantis?
Stellantis gets better use of its American factory capacity and earns revenue from producing vehicles under the Defender name. With its Belvidere, Illinois plant being prepared for future Jeep models, adding a partner brand product keeps factory operations running more efficiently.
When will American buyers see these new Defenders?
No production timeline or on-sale date has been announced. JLR aims to finalise a manufacturing agreement with Stellantis by the end of this year. After that, vehicle development, testing, and production setup would take additional time before any JLR Stellantis Defender product reaches dealerships.
Will these vehicles be cheaper than the current Defender?
Pricing hasn’t been confirmed, but building inside America removes import tariffs from the equation. That cost saving could allow JLR to price the new Defender models more competitively against American rivals like the Jeep Wrangler and Ford Bronco, which currently sell at price points JLR can’t match with imported vehicles.
American car buyers haven’t had a proper Defender option at Wrangler or Bronco prices — ever. If the JLR Stellantis Defender project delivers what Molyneux described, that changes. A British icon built in America, on American platforms, at prices that actually compete with the trucks Americans already love buying. Whether the two companies can agree on the details before the end of this year is the only question left that matters right now.
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