Confirmation that diesel Jaguars will be launched next year comes with the news that Brazilian foundry company Tupy (the largest in Latin America) has signed an agreement to supply the car maker with cylinder blocks for a new generation of V6 2.7-litre diesel engines from 2003, writes Rogério Louro Alves.
The 10-year contract is worth $US210 million according to Tupy.
The engine is part of a family of direct-injection diesels that Ford, whose Premier Auto Group owns Jaguar, is known to be developing for use across the group’s various marques. The first, a 1.4-litre four, has already debuted in the new 2002 European Fiesta compact hatchback.
Jaguar has previously developed running prototypes of diesel cars using bought-in engines but none has so far made production.
Tupy will produce the Jaguar cylinder blocks using compacted graphite iron.

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By GlobalDataTupy started operations in 1938 and produces components for automotive engines, brakes, steering, transmissions, axles and suspensions.
The company has two plants in Brazil and supplies local vehicle and parts makers as well as exporting to over 40 countries.