JLR had originally revealed plans to close one of its two Midlands plants by 2014, but the company has now secured the future of 7000 jobs (2000 at Castle Bromwich and 5000 in Solihull) and hopes to create as much as 4500 new jobs over the next decade, as JLR expands its product range.
The new Range Rover Evoque is the first part of this range expansion and will create 1500 new jobs at the firm's plant in Halewood, Liverpool.
"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," said JLR CEO, Dr Ralf Speth. "This is truly the beginning of a new era for Jaguar Land Rover," he added.