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Jaguar Land Rover plans English engine plant


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Jaguar Land Rover (JLR) is planning to establish a new engine-building plant in central England, it was announced on Monday.

The car company, which is part of the Indian group Tata Motors, is to invest £355 million in the scheme and will be backed with £10 million worth of government funding.

Support from the state is being offered with a view to boosting British manufacturing, with 750 jobs expected to be created as a result of the project.

“JLR choosing Wolverhampton for its new engine plant in the face of tough international competition is a tremendous boost for manufacturing in the UK and the West Midlands in particular,” said business secretary Vince Cable.

Cable, a member of the Liberal Democrat junior coalition party, marked the announcement by visiting a JLR production plant in nearby Solihull. The Lib Dems are holding their annual conference in Birmingham, the largest city in the region.

JLR already employs more than 19,000 people in Britain and supports up to 140,000 jobs. It has been boosted by strong demand from emerging markets such as Russia and China for its cars.

“As we invest £1.5 billion a year for the next five years on new product developments, expanding our engine range will help us realise the full global potential of the Jaguar and Land Rover brands,” said Ralf Speth, JLR CEO.

Britain is seeking to support manufacturing as part of efforts to rebalance an economy that had been over-reliant on financial services.

Britain’s car industry is now largely foreign-owned but employs around 800,000 people and accounts for about 10 percent of the country’s exports.

Speth said last week at the Frankfurt auto show that JLR expected to decide on a local partner for production in China by the end of this year.

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Jaguar Land Rover plans English engine plant
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