Jaguar Land Rover will invest hundreds of millions of pounds in electric vehicle production at its plant in Castle Bromwich, a suburb of Birmingham.
Britain’s largest car maker will produce an electric version of the Jaguar XJ at the factory, helping to secure 2,700 jobs – a major boost for an industry that has been hit hard by uncertainty surrounding Brexit.
“The future of mobility is electric and, as a visionary British company, we are committed to making our next generation of zero-emission vehicles in the UK,” said Ralf Speth, JLR’s chief executive.
JLR announced in January that it would cut 4,500 jobs, mostly in the UK, adding to 1,500 redundancies in 2018.
The company, owned by Indian conglomerate Tata, has previously warned that a no-deal Brexit could cost it up to £1.2bn a year.
1/5 Jaguar Land Rover
Britain’s largest automotive manufacturer announced in January that it plans to cut 4500 jobs from its 40,000 workforce
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2/5 Nissan
The Japanese car company announced early in February that it would no longer be making the new X-trail model at its Sunderland factory
Getty
3/5 Honda
Honda has announced that it is planning to close its Swindon plant with the loss of 3,500 jobs
PA
4/5 Michelin
Michelin announced in November that it will close its Dundee tyre factory which employs over 800 people by 2020
PA
5/5 Schaeffler
Shchaeffler’s Llanelli plant is to close by the end of 2019. The company provides automotive and and industrial parts worldwide and the Llanelli plant employs over 200 people. Juergen Ziegler, chief executive for Europe, said that while Brexit was not the only factor, it has “brought forward” the decision to relocate
1/5 Jaguar Land Rover
Britain’s largest automotive manufacturer announced in January that it plans to cut 4500 jobs from its 40,000 workforce
Getty
2/5 Nissan
The Japanese car company announced early in February that it would no longer be making the new X-trail model at its Sunderland factory
Getty
3/5 Honda
Honda has announced that it is planning to close its Swindon plant with the loss of 3,500 jobs
PA
4/5 Michelin
Michelin announced in November that it will close its Dundee tyre factory which employs over 800 people by 2020
PA
5/5 Schaeffler
Shchaeffler’s Llanelli plant is to close by the end of 2019. The company provides automotive and and industrial parts worldwide and the Llanelli plant employs over 200 people. Juergen Ziegler, chief executive for Europe, said that while Brexit was not the only factor, it has “brought forward” the decision to relocate
JLR told Sky News: “We are making this investment because the ongoing Brexit uncertainty has left us with no choice, we had to act, for our employees and our business.
“We are committed to the UK as our home and will fight to stay here but we need the right deal.
“We will continue to work with government to secure a deal that supports business.”
In May, JLR reported a £3.6bn annual loss after writing down the value of its business in the face of plummeting demand in China, Brexit and uncertainty about future regulation of diesel-fuelled vehicles.
The company called on the government and industry to work together to bring large-scale battery production to the country.
JLR plans to offer electric versions of the whole range of Jaguar and Land Rover models by 2020.
It previously announced that it will open a battery-making site in the Midlands next year.
Business Secretary Greg Clark hailed the news as a “vote of confidence in the UK automotive industry”.
“It reflects our determination for the UK to be at the forefront of the development and manufacturing of the next generation of electric vehicles,” he said.
The UK’s largest union also welcomed the announcement.
Unite’s assistant general secretary Steve Turner said: “Not only is it a fantastic boost to the UK car industry, but it ensures that Jaguar Land Rover’s Castle Bromwich site remains a powerhouse of the regional economy, providing a living for thousands of workers and supporting many more in the supply chain.
“The government and Theresa May’s replacement as prime minister must make sure it is not the last for the UK’s world-beating car workers and their families.”
UK car sales fell 15.5 per cent in the year to May – the twelfth successive month of contraction in the industry.
Factories built 116,035 new vehicles in May, 21,239 fewer than a year earlier.
