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Jaguar Land Rover's i54 pledge after shock diesel and petrol car ban

Jaguar Land Rover has pledged to maintain investment in its £1bn engine factory despite shock Government plans to ban the sale of new diesel and petrol cars and vans from 2040.

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A thing of the past? A production line of engines being manufactured at the Jaguar Land Rover plant on the i54 site

The proposals, unveiled by Environment Secretary Michael Gove, puts the factory – making diesel and petrol engines on the i54 site near Wolverhampton – directly in the firing line.

Reacting to the Government announcement, Jeremy Hicks, UK managing director of Jaguar Land Rover, said: “Customers can be reassured that Jaguar Land Rover is continuing to invest in cleaner technology, with significant investment at our Engine Manufacturing Centre near Wolverhampton, as well as a major hybrid and electrification programme.”

He addded: “We welcome the clarity provided on the transition to a future where electric cars are the norm. Jaguar Land Rover is already working towards the 2040 timetable in moving to autonomous, connected, electric vehicles.”

But he warned there was no guarantee that customers would adopt electric vehicles as quickly as the Government hoped.

The Government says it will work with local authorities developing ‘value for money and appropriately targeted’ diesel scrappage schemes as part of its ambitious plans to tackle air pollution.

At the same time, motorists could face charges for driving ‘dirty’ vehicles on some of the region’s busiest roads – including the A38 Aston Expressway and the A452 which stretches from Brownhills and Aldridge to Castle Vale.

The Government proposal is part of an accelerating drive towards electric-powered cars and follows a similar move in France earlier this month.

They pose a major challenge to the West Midlands automotive sector, which employs around 50,000 people. While those companies making seats and body panels would be unaffected, life could become tough for those making engine and carburettor parts.

And a big question mark hangs over the JLR engine plant after 2040. The luxury car maker has spent almost £1 billion on its Wolverhampton engine factory, which employs 1,400 on the i54 site, and is doubling its size to two million square feet as it ramps up production.

South Staffordshire MP Gavin Williamson, whose constituency includes the i54 plant, said he wants to see the site become a ‘world leader’ in new electric powered cars. He said: “This is a massive challenge for us.

“Thousands of jobs depend on the automotive industry not just in my constituency but across the country. It is vital the government now works with first class manufacturers like JLR to invest in new technology so they can become a world leader.”

West Midlands Mayor Andy Street said the announcement was a ‘unique opportunity’ for the region.