Jaguar Land Rover is expected to announce plans to build electric cars in the UK.
It is a huge boost for an industry that has suffered recently with Ford, Nissan and Honda all revealing plans for big cutbacks in the UK, against a background of declining sales.
It is believed Jaguar Land Rover’s new car will be an all-electric version of the Jaguar XJ sedan replacement, followed by others including a sports utility vehicle.
The main investment is expected to be at its Castle Bromwich factory, which will close for six weeks to be refitted.
Batteries for the new electric XJ are expected to be made in Hams Hall, Warwickshire, while the electric motors will probably be manufactured at JLR’s engine plant near Wolverhampton.
The investment follows an agreement for employees to work a four-day week as part of restructuring plans.
The Unite union said at the time that the deal would secure the future of the Castle Bromwich plant and pave the way for future investment.
UK car production fell by 15.5% in May compared with the same time last year, a 12th straight month of decline, amid falling exports and a slump in the home market.
Ford is closing its engine factory in Bridgend, South Wales, Honda is shutting its Swindon plant in 2021 and Nissan will not now be building build its new X-Trail vehicle at its Sunderland plant.
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