JLR steps up a gear with petrol engine production at Wolverhampton i54 factory

The plant has been making four-cylinder diesel Ingenium engines since it opened but JLR has now revealed it has started petrol engine production in a purpose built assembly hall at the £1bn facility.

The first petrol engines will be test models. Next year will see the factory supplying petrol and diesel engines to cars across the Jaguar Land Rover range. As production increases the factory is expected to hit its target of creating 1,400 jobs.

At the same time the West Midlands-based car company is to pump £100 million into its Castle Bromwich factory so it can start making the hugely-popular Jaguar XE saloon.

The XE was the first car fitted with the four-cylinder diesel Ingenium engines made at Wolverhampton when it launched last year. Since then the workforce at the engine plant, on the i54 site, has grown to nearly 1,000.

The diesel engines are used in all the new Jaguars – including the F-Type sports car and the new F-Pace crossover, as well as the Range Rover Evoque and the Land Rover Discovery Sport.

JLR has now revealed production has started of four-cylinder Ingenium petrol engines.

Designed, engineered and manufactured in the UK, they will deliver up to 25 per cent more power than the engines they replace and offer fuel consumption reductions of up to 15 per cent. Test production runs of the engines will continue this year and they will start being fitted into cars next year.

The XE and the F-Pace – the most popular car in Jaguar's history – are both made at Solihull but demand is outstripping the factory's ability to cope. It is already running three shifts, 24-hours a day.

As a result JLR is investing £100m into the Jaguar factory at Castle Bromwich so it can start making the XE. There is no suggestion at the moment that the move will mean any major increase in jobs.

Wolfgang Stadler, Jaguar Land Rover's executive director of manufacturing, said: "The significant investment to create two centres of excellence in aluminium vehicle manufacturing, utilising shared technologies, was deliberate. It gives us the flexibility to quickly respond to consumer demand for our growing range of products."

The arrival of XE at Castle Bromwich continues the renaissance of the plant, which was threatened withslated for closure in 2008. The £100m investment to welcome the latest model takes the total invested in the site to more than £500m over the last two years.

Nicolas Guibert, Castle Bromwich operations director, said: "2016 is a pivotal year for Castle Bromwich. The arrival of the XE sees us increase our model lines and volume.

"This plant has a rich heritage and is undergoing its most significant transformation in decades, with major infrastructure projects either complete or under way. The commissioning of our all-new press line and launch of our body shop to support the introduction of XE means Castle Bromwich is future-proof."

In August, Jaguar sales stood at 85,726 for the year, an increase of 72 per cent on 2015. This strong performance is driven primarily by F-Pace and XE, which made its US market debut in the summer.

Jaguar Land Rover's Solihull plant will continue to operate three shifts, 24 hours a day, to keep up with global demand for the Jaguar F-PACE and Range Rover Sport which are built on the same production line.

Meanwhile, work is continuing on the expansion of the JLR engine factory in Wolverhampton, which has already grown to employs 1,000 people. as it produces diesel Ingenium four-cylinder engines for a range of cars. Production of petrol engines is due to start this year, and a building programme due to complete next year will see it the factory double in size, turning it into a £1bn facility.

Responding to the news, Climate Change and Industry Minister Nick Hurd said: "Our world-class automotive sector continues to go from strength to strength and this announcement is more good news for the local economy and the Midlands as a whole. JLR has invested heavily in skills and new innovative manufacturing techniques over the years, and the demand for its vehicles is the result of that long-term investment."