Jaguar Land Rover to close one West Midlands factory
"This was not a sustainable situation. Actions taken have started to reverse the trend, quarter over quarter, and we now have to take the company to the next level of competitiveness."
The firm said it had to match, if not beat, the levels of cost and efficiency achieved by its competitors so it aimed to produce improved products and boost their environmental performance.
"As the company reduces engineering complexity for its new product range, West Midlands manufacturing will transfer from two plants to one by the middle of the next decade, improving efficiency and cost.
"Further cost reductions include pension restructuring, lower employment costs for new hires and a focus on IT and business simplification. Volume growth, especially in emerging markets, combined with low-cost country sourcing will also reduce variable cost.
"The entire package of measures does not envisage any compulsory redundancies.
"This plan of action will restructure the company and deliver positive cash and profits that are essential to re-invest in the business and secure its future," said the statement.
The firm said it would build a new generation of lightweight vehicles, with hybrids and electrification technology which it said will "significantly" reduce fuel consumption and CO2 emissions.
Around £800 million has been dedicated to environmental innovation and the new plan includes building the Range Rover LRX, which the firm said will be the smallest, most fuel-efficient Range Rover yet.
Today's announcement included news that a production version of the Land Rover LRX concept car will be built next year at Halewood.
Designed and engineered at Land Rover's site at Gaydon in the West Midlands, it will be the smallest, lightest and most efficient vehicle the company has produced.
Phil Popham, managing director of Land Rover, said: "The production of a small Range Rover model is excellent news for our employees, dealers and customers. It is a demonstration of our commitment to investing for the future, to continue to deliver relevant vehicles for our customers, with the outstanding breadth of capability for which we are world-renowned.
"Feedback from our customer research also fully supports our belief that a production version of the LRX concept would further raise the desirability of our brand and absolutely meet their expectations."
Gerry McGovern, Land Rover design director, said: "The new vehicle will be a natural extension to the Range Rover line-up, complementing the existing models and helping to define a new segment."
