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Tata Motors-owned Jaguar Land Rover said on Thursday it will invest 800 million pounds (over Rs 6,200 crore) on developing eco-friendly products as part of a decade-long new business plan, which will also see the company shutting one of its plants in the UK.
The new business plan is designed to increase its global competitiveness, drive growth and sustain profitability and respond to the challenges of climate change, the company said.
A Tata Motors spokesperson said as part of the new business plan 800 million pounds have been dedicated to environmental innovation, which will in part be supported by the European Investment Bank's funds.
Also, one of the two plants in West Midlands would be shut and the workforce would be transferred to the other as part of strategy to streamline and become cost competitive.
"There will not be any job loss as the workers will be transferred to the other facility," the spokesperson said, adding by the first half of next year JLR would be able to finalise which one of the West Midlands plant would be shut.
The consolidation will be reached by the middle of the next decade, he added.
He also said 800 new jobs will be added to JLR's other plant at Liverpool, where Land Rover's new vehicle LRX Concept would be manufactured.
JLR has a total of 14,500 workers, currently working in its three plants in the UK.
Commenting on the new business strategy, Jaguar Land Rover chief executive officer David Smith said the plan recognises the impact of the economic collapse on JLR's business and at the same time opportunities that lie ahead.
"We are confident that a new, more efficient and competitive structure combined with future investment will unlock the true potential of this business," he added.
As per the new business strategy, JLR will expand its range of products, which includes bringing a new generation of lightweight sedans, sports cars and premium SUVs, with hybrids and electrification technology reducing fuel consumption and CO2 emission.
Hit by the global economic crisis and a slump in the auto industry, JLR swung from profit in 2007 to heavy losses over the past 12 months. It's production declined by more than 1,00,000 units and it laid off 2,500 workers, while pays were frozen and bonuses cancelled for others.
The company said its new plan identifies global competitive benchmarks. "These recognise that Jaguar Land Rover has to match if not beat the levels of cost and efficiency achieved by competitors that manufacture in multiple locations around the world."
The new strategy addresses both medium and long-term plans, but has an acute focus on the next year. Actions across the business will focus on improving products and environmental performance along with cost competitiveness for sustained growth, it said.
Image: A Jaguar car