Jaguar Land Rover (JLR) is to increase investment in its new West Midlands engine manufacturing centre from £355m to £500m.
The move, announced at the Geneva motor show, is expected to double the number of engineering jobs at the plant, taking the total number of people employed at the site to almost 1,400.
The plant, to be based at Wolverhampton’s i54 business park, will manufacture a new generation of advanced, lightweight four-cylinder low-emission diesel and petrol engines that are currently under development at JLR’s advanced research and development facility.
The 100,000 sq m plant is expected to open later this year with the first engines coming off the production line in 2015.
Speaking at Geneva, JLR’s chief executive, Dr Ralf Speth, said: ‘Not only does it bring our engine supply back to our production doorstep, but it gives us significant new resource as we continue to innovate with new products and markets.’
The firm, which is the UK’s largest premium automotive manufacturer, has also announced that it will invest £2.75 billion in product creation during 2013 to support the launch of eight new products. These include the Jaguar F-TYPE and the introduction of the world’s first nine-speed gearbox in its Land Rover product line-up.