http://news.bbc.co.uk/1/hi/business/8272499.stm
Jaguar Land Rover has said it will close one of its plants in the West Midlands after 2014.
The firm is considering the closure of either its Castle Bromwich plant in Birmingham or its factory in Solihull.
There will be no job losses in the short term because of an agreement between unions and the company, which is owned by Indian giant Tata.
About 800 new jobs will be created at its Halewood plant on Merseyside, which will start building a new Range Rover.
The firm says the new model, the LRX Concept, will be "the smallest, lightest and most efficient vehicle the company has ever produced".
Increasing competitiveness
BBC chief economics correspondent Hugh Pym said Jaguar Land Rover was seeking to consolidate its operations.
It currently employs about 5,000 workers in Solihull, 2,000 in Castle Bromwich and 1,800 at Halewood.
The carmaker will decide in the next 12 to 18 months which plant it will close.
Jaguar Land Rover said the plan was designed to increase the firm's competitiveness, drive growth and sustain profitability.
"This is a plan that recognises the impact the economic collapse has had on our business, and at the same time the opportunities that lie ahead for these two great brands," said chief executive David Smith.
Last month, Tata announced that it had secured private funding for Jaguar Land Rover and would not need government support.
It had previously spent months negotiating with the British government for state funding, but the two sides failed to agree terms.
Jaguar Land Rover has said it will close one of its plants in the West Midlands after 2014.
The firm is considering the closure of either its Castle Bromwich plant in Birmingham or its factory in Solihull.
There will be no job losses in the short term because of an agreement between unions and the company, which is owned by Indian giant Tata.
About 800 new jobs will be created at its Halewood plant on Merseyside, which will start building a new Range Rover.
The firm says the new model, the LRX Concept, will be "the smallest, lightest and most efficient vehicle the company has ever produced".
Increasing competitiveness
BBC chief economics correspondent Hugh Pym said Jaguar Land Rover was seeking to consolidate its operations.
It currently employs about 5,000 workers in Solihull, 2,000 in Castle Bromwich and 1,800 at Halewood.
The carmaker will decide in the next 12 to 18 months which plant it will close.
Jaguar Land Rover said the plan was designed to increase the firm's competitiveness, drive growth and sustain profitability.
"This is a plan that recognises the impact the economic collapse has had on our business, and at the same time the opportunities that lie ahead for these two great brands," said chief executive David Smith.
Last month, Tata announced that it had secured private funding for Jaguar Land Rover and would not need government support.
It had previously spent months negotiating with the British government for state funding, but the two sides failed to agree terms.
