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24 September 2009

Jaguar Land Rover’s plans for the West Midlands -

Earlier today Jaguar Land Rover (JLR) announced their new business plan – which includes plans to build the new LRX, the smallest and most fuel-efficient Range Rover, at the Halewood plant in Liverpool and, around the middle of the next decade, to move manufacturing in the West Midlands from two plants to one. JLR have said their plans do not envisage any compulsory redundancies.

This is a time of major change in the automotive industry. The low carbon world that is the future for the industry offers great opportunities for Britain's vehicle manufacturers and suppliers. But there are also massive challenges along the way. Today's announcement by JLR demonstrates both.

I certainly welcome JLR's assurance that there will be no compulsory redundancies as they restructure their operations. However, in amongst all of this, nobody should forget the uncertainty and worry which JLR workers in the Midlands will be feeling about what the next few years will bring. It is important that they fully discuss with trade unions the range of issues that today's announcement involves.

It is good to see JLR committing itself to develop a range of new products here in the UK but the potential loss of one of their two plants here in the Midlands is still a matter of real concern. JLR plays a key role in maintaining the skill base here in the West Midlands – not only in JLR plants, but also in the wider supply and component industries. In short, JLR is part of the glue which holds our regional economy together. Maintaining our skill base here in the West Midlands – and developing it further – will be crucial to securing a successful future for JLR. The company must take this on board as it considers their own sourcing requirements and how they plan their future role here in the West Midlands.

I have already spoken to the company today and I have asked them to come to Westminster to discuss these and other key issues with MPs as soon as possible.