Land Rover Develops New Market Segment with Freelander

Best-Selling Land Rover Model Makes North American Debut At
2001 North American International Auto Show


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    DETROIT, Jan. 9 With its new Freelander, which debuted today at the 2001 
North American International Auto Show, Land Rover has identified a new niche
within the hotly contested and rapidly expanding small sport-utility segment.

    At a press conference held today at the auto show, Land Rover chairman and
chief executive Bob Dover detailed plans to develop this niche and significantly
increase Land Rover's North American sales in calendar year 2002.

    Mr. Dover called Freelander a new, small, premium sport- utility targeted 
at driving enthusiasts.  The new Freelander will create and define the premium 
small sport-utility segment in the same way Range Rover helped establish the 
luxury sport-utility segment when it was launched in the U.S. in 1987.

    (The new Freelander will be launched in North America in the fourth quarter
of 2001.  The first all-new Land Rover for North America since 1994,
Freelander will join the already successful Range Rover and Discovery Series
II models, expanding the British automaker's North American line of vehicles
to three.  In his speech today, Mr. Dover identified the U.S. market as Land
Rover's number-one priority for growth.  The new Freelander will nearly double
Land Rover sales in North America in calendar year 2002.

    "Freelander, with its capability on any road, will speak to people who
know and use sport-utility vehicles.  It will appeal to customers who
appreciate light and quick European handling along with true go-anywhere
capability," noted Mr. Dover, who was named chairman and chief executive of
Land Rover on July 1, 2000.  "Freelander will lead significant Land Rover
growth in North America."

    Kalahari and Kensington, the two extreme Freelander concept vehicles shown
at the press conference were developed and built by Land Rover Special
Vehicles in Solihull, England.  The utilitarian Freelander Kalahari, painted
Molten Orange, and the luxurious Freelander Kensington, finished in Black
Cherry, visually demonstrate the breadth of capability at the heart of every
Land Rover.

    Perhaps the finest Freelanders ever produced, the two show vehicles reveal
the directions the newest Land Rover will take when it reaches retail
showrooms in North America.  At launch, Freelander will be offered as a five-
door model and will carry a price below $30,000.  Cloth and leather interior
trim packages will be offered.  Land Rover is also considering the possibility
of launching a three-door Freelander model in North America at a later date.

    From the earliest stages of development, a core objective for Freelander
was to establish an aesthetic standard in the small SUV segment.  Freelander's
clean lines capture the adventure and excitement at the core of the new
concept while also evoking the unmistakable Land Rover character and pedigree.
In keeping with the fundamental Land Rover values of engineering integrity and
fit-for-purpose design, Freelander's styling has evolved from a very carefully
considered basic package that combines a roomy and versatile cabin layout with
a rugged, all-wheel-drive chassis configuration that is exceptionally capable
on- or off-road.

    Freelander is the first Land Rover in history to combine unibody
construction with a fully independent suspension.  This approach was chosen
with consideration to the vehicle's size, which is smaller than previous Land
Rovers.  The result is an ideal combination of ride and handling both on- and
off-road.  The basis of the suspension is a MacPherson-type strut arrangement
for each wheel, with steel subframes mounted rigidly to the body at the front
and rear.  Generous amounts of wheel travel are provided: seven inches (180
mm) at the front and a full eight inches (204 mm) at the rear.

    Looking underneath a Freelander, one could easily think that this robust
vehicle has a separate frame.  There are substantial longitudinal box-section
rails running the length of the vehicle, tied together and to the floorpan by
no less than eight integral crossmembers similar to the ladder-frame
construction beneath other Land Rover models.  The structure above the
floorpan is equally strong.  This focus on structural rigidity allows
Freelander to shrug off the most severe operating stresses and strains.
Measured on a torsional test rig, the five-door Freelander is impressive: it
requires nearly 13,000 lb.-ft. of twisting force to generate just one degree
of deflection across its wheelbase.  Engineers subjected "test mules" to the
cruelest ordeals, such as 3,000 successful miles on Land Rover's torture-test
track.  One thousand miles is normally considered a good "lifetime" 
test.

    The power unit for the North American market is Land Rover's KV6 engine, a
2.5-liter, 24-valve, double overhead camshaft (DOHC) unit developing an
estimated 175 bhp and 177 lb.-ft. of torque.  Final ratings for the North
American-specification Freelander have not yet been established.  The V6
engine is exceptionally light and compact in relation to its capacity and
power.  The efficient and quick engine will be mated to a Jatco five-speed
Steptronic automatic transmission that offers either the smooth ease of an
automatic or the responsive precision of a five-speed manual shifter.

    All Freelanders sold in North America will also feature permanent all-
wheel drive; a center viscous coupling unit (VCU) similar to that of Range
Rover; four-wheel Electronic Traction Control (4ETC); Land Rover's patented
Hill Descent Control (HDC); and an all-terrain Anti-lock Braking System (ABS).
No other vehicle in the segment offers this level of innovation.

    Freelander, the third model in Land Rover North America's lineup, will
help lead the company's growth and expansion in the coming years.  Sales of
nearly 30,000 units in 2000 will increase to more than 40,000 units in
calendar year 2002.  To support this growth, Land Rover North America will
continue to expand its award-winning network of Land Rover Centres.

    Currently, Land Rover counts 143 retail outlets in North America, 87 of
which are critically acclaimed Land Rover Centres.  This number will grow by
20 percent in the next 18 months.  Land Rover Centres, stand-alone Land Rover
retail outlets, continue to score near the top of the industry in terms of
sales satisfaction thanks in part to the extensive and wide-ranging training
programs developed for retailers by Land Rover University.  The Centre concept
was launched by Land Rover North America in 1995 and has now become a model
for Land Rover retailing around the world.