Land Rover has announced that the global manufacturing of the Discovery Sport model will conclude in December 2026. This seven-seater SUV, introduced in 2014 and once the brand's best seller, is currently facing lower sales volumes compared to more expensive models.
In addition to its considerable age for the category, the Discovery Sport will be discontinued because it does not comply with current European legislation. Starting in January 2027, all vehicles sold on the European continent must feature advanced driver distraction alert systems and automatic emergency braking capable of detecting pedestrians and cyclists.
The larger sibling model, the Discovery, also risks being retired without a direct replacement, which would end this vehicle line. Its successor will be the new Defender Sport, which will feature a more robust design and come in electric versions.
In Brazil, production of both the Land Rover Discovery Sport and the Range Rover Evoque has already been halted. According to Quatro Rodas magazine, operations at the factory located in Itatiaia, Rio de Janeiro, ceased in June.
Chery has held meetings with the municipality of Itatiaia to discuss the possibility of taking over the manufacturing unit. If this transaction materializes, the factory could be expanded to produce models from the Omoda, Jaecoo, Lepas, and Jetour brands. The vehicle most anticipated to begin production is the Omoda 4, equipped with a 1.0 turbo flex engine.
The Chinese companies plan to use the Fluminense plant to supply the Brazilian market and other international markets, although these actions are still in the negotiation phase without confirmation of purchase.
In parallel, there is a collaboration between Land Rover and Chery in China that led to the creation of the Freelander brand. This new division manufactures automobiles using Chinese platforms and is focused on the Asian market. There are plans for Freelander to become a global brand, integrating Chery's expansion strategy, which already includes Omoda, Jaecoo, Lepas, iCaur, and Jetour. If Brazil becomes a target market for this brand, there is a possibility that production could take place in Itatiaia.
Stellantis announced the closure of the engine factory located in Douvrin, in northern France, with a planned date of October 30, 2026, marking the end of the unit's 57 years of existence. The decision was communicated on July 20.
The plant began in 1969, as a result of a collaboration between Peugeot and Renault. Initially, it was responsible for producing the X engine, which was used in various vehicles such as the Renault 14, Peugeot 104 and 205, as well as the Citroën Visa and C15 and Talbot Samba Rallye.
Subsequently, the unit began manufacturing the V6 PRV, used in several French luxury models and also in the DeLorean from 'Back to the Future'. Furthermore, Douvrin assembled the EP and Prince powertrains, the latter developed in partnership with BMW and found in Peugeot and Citroën, from the EP6 Turbo of the DS3 Racing to the 270 hp version of the Peugeot 308 GTI and RCZ R.
In 2012, the three-cylinder EB engine, known as the 1.2 PureTech, was introduced, which used an oil-bathed timing belt. Although this technology promised to reduce friction and consumption, the belt showed degradation due to contact with the lubricant, generating residues that harmed the engine's lubrication. Issues with oil consumption and reliability were attributed to the design and usage standards, such as stop-and-go traffic, and not to the factory's operation.
The response to these issues included recall calls, warranty extensions in Europe, and, starting in 2023, the implementation of a generation with a timing chain instead of a belt. In recent months, the unit was only producing the EB2, the 1.2 version already with a chain, intended for combustion and hybrid models of the group, although this version has been discontinued in Western Europe. The 1.5 BlueHDi engine, another model with a questionable reputation, left Douvrin the previous year.
There are two main factors justifying the closure. The first is that the replacement for the 1.2 PureTech, a new 1.2 turbo engine, will be produced in Trémery, near Metz, where Stellantis plans to finalize the lifecycle of this engine. The second factor is the growing electrification of the region, which is now called the 'battery valley', parallel to Silicon Valley. Near Douvrin operates the ACC gigafactory, a battery supplier for the Peugeot e-3008 and e-5008, and there are expectations that the plant will be adapted for cell production, although the automaker has not yet confirmed this destination.
In terms of labor, Stellantis relocated 340 employees to the adjacent battery operation and offered transition plans for another 330. Fewer than 50 permanent employees and about 50 on part-time contracts are still awaiting a defined destination and require retraining to adapt to the new production chain.
However, the engine that marked Douvrin's recent history will not cease production immediately; the Tychy plant in Poland will continue to manufacture the 1.2 PureTech and is expected to keep it in line for a few more years, targeting markets outside of Western Europe.
Mercedes-Benz concluded the second quarter of 2026 with a net profit up by 13.5%, totaling 1.09 billion euros. However, the profit from its automotive division suffered a drastic reduction due to the situation in China.
Due to decreased sales in the Asian country, the German automaker was forced to lower its revenue and sales volume forecasts for the remainder of the year. The operating result of the car division registered a drop of approximately 94%, falling from 783 million to just 49 million euros.
This decline was explained by losses of 704 million euros recognized in the brand's investments in Chinese companies, constituting an adjustment in the balance sheet that did not affect cash flow. After discounting this impact, the division's profit fell by 26%, reaching 909 million euros, maintaining a margin of 4% on sales, which is within the company's established targets.
Despite the loss in the Chinese market, the loss of market share is a concrete fact. In the analyzed quarter, 417,765 vehicles were sold, compared to 453,674 in the previous year. Specifically in China, registration figures decreased by 30%, under pressure from competition from local manufacturers and low demand. In contrast, sales in Europe showed an increase of 4%, while in the United States they grew by 10%. It is estimated that without the performance in China, global volume growth would have been 2%.
In response to these challenges, the company began estimating slightly lower revenues and car sales than projected for 2025. However, it maintained the annual profitability target and raised the expectation for the share of electrified vehicles to between 23% and 25%. The company's shares recorded a rise of over 5% on the Frankfurt stock exchange.
Two sectors contributed to stabilizing the overall balance sheet: the financial services segment, whose adjusted operating profit rose by 70%, reaching 492 million euros, and the 417 million obtained from the sale of part of the stake in Daimler Truck. In the vehicle portfolio, electric models brought significant relief, with the sale of 52,852 units, a 51% increase compared to last year.
The financial report does not detail information regarding Brazil, where the brand only sells imported passenger cars since closing production in Iracemápolis (SP) and selling the factory to the Chinese company GWM.
