Jaguar Land Rover will close one of its plants in the West Midlands by the middle of the next decade.
The firm announced in its revised business plan that its Castle Bromwich plant in Birmingham or its Solihull plant would be shut, but it stated that there would be no net job losses due to an agreement between unions and parent company Tata.
Around 800 new jobs will be created next year at JLR's Halewood plant on Merseyside, when production of the new Range Rover LRX begins.
JLR currently employs around 5000 workers in Solihull, 2000 in Castle Bromwich and 1800 at Halewood. It will decide in the next 12 to 18 months which plant it will close. However a Land Rover spokeswoman told Autocar the existing plant would be expanded to accomodate the two workforces, and "definitely no jobs will go".
It said the plan was designed to increase the firm's competitiveness, drive growth and sustain profitability.
David Smith, JLR chief executive, said, “This is a plan that recognises the impact the economic collapse has had on our business, and at the same time the opportunities that lie ahead for these two great brands.”
Business Secretary Lord Mandelson said he welcomed "the commitment that Tata is showing in the highly skilled workforce employed by Jaguar Land Rover in the West Midlands and Merseyside, as well as the top-class models it produces".
However, Bert Hill, regional officer at the GMB union, voiced his concerns on the plans to the BBC and said the union would be opposing JLR's decision.
"We are now in a meeting with the company to hear details of their plans. The GMB will be opposing everything we have heard so far. We will fight the company on this - of that I have no doubt," he said.
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Re: JLR to close one Midlands plant
JLR buisiness plan to close one plant is very sad but in a way expected . Solihull gifted Freelander 2 to Halewood by not willing to adopt to Ford latest working practices I believe . The then Halewood plant manager David Hudson and union leader Ritchie Rowlands lobbied for the future buisiness and with the stalling of the Xtype it was easy for Ford to put a shot over solihulls bow and place LR 2 at Halewood which was the most efficient and quality led Ford owned site at that time in the world . 25 years ago by friday there where escorts all over site to be reworked sat sun . By all accounts Solihull is still there . Halewood should have been the easiest to shut with effectively making one model , true the b.I.W and ASSY And paintshop are still under ten years old . What saved Halewood happened years ago most off line jobs were outsourced latest Japanese style practices were adopted and actually followed . Its a terrible announcement two major sites in the Midlands lost to the car industry at least TATA are doing it Fords way perhaps Ford would have had to have done it anyhow . John
Re: JLR to close one Midlands plant
While I have great sympathy for those who will lose their jobs, voluntarily or otherwise (and including those indirectly employed through other local businesses), I think consolidation of this type is absolutely essential if JLR are to have any hope at all of surviving the next few years.
Of course the unions won't see this and will instigate strikes and other protests, all of which will only increase the risk of further job losses.
Re: JLR to close one Midlands plant