Tata Motors has announced that it will close down one of Jaguar Land Rover factories in central England over the next decade. But it has also promised to create 800 jobs elsewhere. It has also announced the plans of introducing a new model of the Range Rover SUV in an attempt to reverse the recent losses it had.
Tata has said that it will decide next year whether to shut down its factory or its Solihull plant.
"The plan includes decisive actions to see through the next 12-18 months as markets recover and positions the company to grow and prosper in the future," said a statement from Jaguar Land Rover.
The company also informed that there will not be any compulsory redundancies involved in the shutting down of the plant. But the GMB union said that it will go against the shutting down plans of Tata.
"We are now in a meeting with the company to hear details of their plans. GMB will be opposing everything we have heard so far," said Bert Hill, GMB's regional officer.
Tata also promised that it will start producing the compact LRX Range Rover, which was introduced last year as a concept model at the Detroit auto show.
"This is a plan that recognizes 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," said Jaguar Land Rover CEO David Smith.
"We are confident that a new more efficient and competitive structure combined with future investment will unlock the true potential of this business."