Jaguar to build all-electric car in Birmingham

JAGUAR Land Rover is poised to build its next-generation electric cars in Birmingham, delivering a huge boost to 2,500 workers.

The firm is expected to make a formal announcement this week that its Castle Bromwich plant will make an eco-friendly version of its luxury XJ saloon.

It is a boost for the industry after months of gloom from car companies due to concerns over Brexit and a slump in sales as consumers shun polluting diesel engines.

Due to hit forecourts next year, the all-electric XJ will be able to travel nearly 300 miles on a single charge. It is the first of three electric vehicles planned by Jaguar, with a large SUV coming next and a third model also under discussion.

The decision will come as a huge relief for staff at Castle Bromwich, a former spitfire aircraft plant. Employees agreed last month to work a four- day week as part of restructuring plans as manufacturing of the current XJ model comes to an end.

The decision to make the new XJ at the factory was reached without any reliance on state funding and is expected to go ahead regardless of how Brexit is resolved.

Jaguar – which is owned by Indian conglomerate Tata Group – already makes an electric vehicle, the I-Pace, but this is built at its Magna steyr plant in austria.

The new XJ is seen as more of a competitor to high-end electric marques such as Tesla, and insiders at Jaguar hope it will appeal to businessmen – especially Chinese – with chauffeurs.

It comes as the British brand, which is more than 80 years old, seeks to save £2.5bn a year by axing 4,500 jobs.

Jaguar lost £3.6bn in the year to March, driven by sharp falls in demand for its vehicles and a cut in the value of the firm’s diesel technology due to the pollution backlash.

It sold 579,000 cars in total, down 5.8pc – with the important Chinese market suffering a 34.1pc plunge.

Batteries for the electric vehicles will come from Jaguar’s Hams Hall plant in Birmingham, and electric motors will be made at its wolverhampton engine factory.

Castle Bromwich will continue making XE and XF saloons alongside the new model.

Other car firms have been cutting back in Britain and Europe as the market shrinks and fears grow that trade could be disrupted by a No Deal Brexit.

Jaguar declined to comment.