12 January 2015
Last updated at 00:02
The car will be based on Jaguar’s C-X17 Sports Crossover Concept
Jaguar Land Rover will create 1,300 new jobs in the UK to build Jaguar’s first sports utility vehicle (SUV) model.
The jobs will be based at its Solihull plant in the West Midlands.
The luxury car firm, owned by India’s Tata Motors, said it had chosen the UK because it was committed to building cars “crafted with that special British flair”.
Business secretary Vince Cable hailed the decision as a “ringing endorsement” of the UK’s car industry.
Mr Cable said Jaguar Land Rover’s decision showed the UK’s car manufacturing sector was in good health.
“The UK’s automotive industry is thriving with a new car rolling off the production line every 20 seconds, and increasing levels of investment that’s helping to secure local jobs,” he said.
The car, called the Jaguar F-PACE, will be based on its C-X17 concept car which was first showcased at the Frankfurt motor show in 2013, and will go on sale in 2016.
Jaguar Land Rover chief executive Dr Ralf Speth said the announcement demonstrated its “commitment to the UK and the advancement of a high-tech, high-skilled, manufacturing-led economy”.
The firm has already invested £1.5bn in the Solihull plant to enable it to increase production, and it said its workforce there had almost doubled over the past three years to 9,450.
In total, it employs 30,500 people in the UK.
The announcement came as it revealed it had sold 462,678 vehicles globally last year – a rise of 9% year-on-year – and the fifth consecutive year that sales have grown.
China saw the strongest growth, with sales up 28%, while in the UK sales rose 7%.