Tata Motors shelves plan to shut JLR plant in UK | autos | Hindustan Times
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Tata Motors shelves plan to shut JLR plant in UK

autos Updated: Oct 15, 2010 20:33 IST

Tata Group-owned Jaguar Land Rover on Friday said it has scrapped plans to close one of its three factories in the UK after an agreement was reached with the worker's union.

"The agreement, which trade unions representing the Jaguar Land Rover workforce will unanimously recommend to their members, sees Jaguar Land Rover revising its plans to consolidate manufacturing operations," the company said in a statement.

Subject to employees endorsing this deal over the next few weeks, Jaguar Land Rover will now retain three plants in the UK -– at Castle Bromwich, Solihull and Halewood --building Jaguar and Land Rover vehicles, it added.

Last September, the company had announced it would shut one of the three plants and transfer the employees to one of the remaining two plants by 2014 to tide over a downturn in the auto industry. It had, however, not provided details.

JLR had successfully made a turnaround this year, with impressive sales prompting the company to revise its plans. Last month, Jaguar Land Rover's total sales stood at 19,528 units, up 16 per cent from the same month last year.

The company said its decision to not close one of the plants "will lead to the creation of thousands of new jobs in Britain over the next decade, including more than 1,500 in Liverpool in 2011... as Jaguar Land Rover invests billions of pounds in the UK and significantly increases both the number of models in its range as well as overall global volumes."