British automaker Jaguar is reportedly planning to set up a new engine factory, with a couple of sites in the UK being considered as possible locations for the plant.
The board of the Indian car maker, Tata Motors, which owns Jaguar Land Rover (JLR), is understood to be discussing the viability of the engine plant and its location at present, with an announcement to be possibly made within the next month. Tata has already committed more than £1bn to the car maker since acquiring it from Ford in 2007 and a new plant would significantly add to that investment.
Sources say that the new factory will begin to build a new 6-cylinder engine that could be offered in the United States in the XF and XJ sedan. Currently, all Jaguar’s sold in the United States come with a 5.0L V8. The naturally aspirated version of the V8 produces 385-hp while the other supercharged versions make 475-hp or 510-hp.
The new plant could add up to 1,000 more employees to JLR’s existing workforce of 17,000 in the UK, in addition to giving the automotive sector and the economy a huge boost.