Jaguar Land Rover reverses plans to close UK plants

Jaguar Land Rover's British factories have been saved after the company announced plans to invest billions of pounds in its business, creating thousands of new jobs. The carmaker, owned by India's Tata, is hiring an additional 1,500 workers at the Halewood plant on Merseyside, while its other two manufacturing sites at Castle Bromwich and Solihull in the West Midlands will be retained, ending fears for their future. It had previously announced plans to close either its Land Rover factory in Solihull, which employs 5,000 workers, or its Castle Bromwich site, which employs 2,000, to cut costs. The number of models in the carmaker's range will be "significantly increased". The U-turn will also see the carmaker recruit 3,000 new workers over the next few years, according to unions. The company said that it would create an extra 500 jobs at its Halewood plant to make the new "baby" Range Rover, the Evoque, which goes on the market next year. This is in addition to the extra 1,000 jobs announced in September for the new model. In May the Guardian had reported that Jaguar had shelved plans to close one of its UK plants. Improved trading at the carmaker prompted a rethink by the new management. The Unite union said today it was "fantastic news" for the company and its workers. The company sold 19,528 cars in September, up 16% on a year ago. Jaguar sales for the month were 4,861, up 10%, while Land Rover sales were 14,667, a rise of 19%. The company also announced a "landmark" pay and conditions deal with trade unions. The agreement, which trade unions will recommend to their members, includes a two-year pay deal worth 5% from next month, with a further rise of at least 3% from November next year. Dave Osborne, Unite's lead negotiator for the car industry, said: "This agreement secures the future of all JLR workers in the UK for the next 10 years and beyond. Just 18 months ago our members agreed to changes to their terms and conditions which ultimately helped the company navigate its way through an unprecedented recession. There can be no bigger sign of loyalty to JLR than that. Today our members have been rewarded for that bold and pragmatic approach." Jaguar chief executive Ralf Speth spoke of the "beginning of a new era for Jaguar Land Rover". He said: "This is a triumph for all concerned. We have ambitious plans for growth and the success of our products around the world and this agreement will allow us to accelerate and realise those plans. "We have already started by beginning to hire 1,500 new employees to support the launch of the new Range Rover Evoque at our award-winning Halewood factory in Liverpool. Our parent company Tata supported us through the recession and our employees also made sacrifices but now we are seeing a great turnaround in the business and everyone involved – our employees, our customers and our Tata shareholders – will benefit from this agreement." New staff in the factories will start on lower rates of pay and receive lower shift premiums. Howard Wheeldon, strategist from BGC Partners, said that the announcement underlined the new management's commitment to keeping production in the UK for the long term, which he said was crucial to preserving Jaguar Land Rover's brand. "It's even better news than we might have hoped. I have always been under the impression that Tata's intention was to expand in the UK. The brand success, particularly for Jaguar, is all about its UK heritage. Being made in Britain is vital to that." Lord Bhattacharyya, who advises Ratan Tata – whose Tata Group bought Jaguar Land Rover two years ago – said: "For the first time in years I feel confident about the economic future of the west Midlands which will be underpinned by JLR as a very strong international car company."