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Thousands of jobs have been saved at Jaguar Landrover in the Midlands.
A deal has been struck to secure both the Solihull and the Castle Bromwich plants until atleast 2020.
It's after sales picked up, and also includes a two year pay deal for staff and an above inflation rise in year two.
Subject to employees endorsing this deal over the next few weeks, Jaguar Land Rover will now retain three plants in the UK – at Castle Bromwich, Solihull and Halewood – building Jaguar and Land Rover vehicles.
This will lead to the creation of thousands of new jobs in Britain over the next decade as Jaguar Land Rover invests billions of pounds in the UK and significantly increases both the number of models in its range as well as overall global volumes.
"This is a triumph for all concerned," said Jaguar Land Rover Chief Executive Officer, Dr Ralf Speth. "We have ambitious plans for growth and the success of our products around the world and this agreement will allow us to accelerate and realize those plans.
"The agreement is a great deal for our workers and the company and we can now really get on with working together to achieve an even more exciting future for the Jaguar and Land Rover brands," added Dr Speth.
Solihull MP, Lorely Burt has welcomed the announcement: "I’m relieved and delighted in equal measure that Solihull and Castle Bromwich plants are to stay. The company have worked incredibly hard to weather the economic storm and it’s a tribute to management and staff thet they made the sacrifices when times were hard and will now enjoy the rewards in terms of job security and pay."