Government will provide £27 million to Jaguar Land Rover for the development of a new greener model, based on Land Rover’s LRX Concept (pictured).
The money is being provided through the Grant for Business Investment scheme. It will contribute to a bill of around £400 million that JLR says it will need for the model.
The company said the new model will be built at its Halewood site and that the venture will safeguard jobs.
“The Government is fully committed to supporting the UK automotive industry as it moves to a lower carbon future. This project aims to design and build a greener car in the UK, safeguarding vital skills and technologies,” said business secretary Peter Mandelson.
“The project would secure production and employment at the Halewood facility and maintain the design capability for Jaguar Land Rover in the UK. This is an important investment for the future and we are delighted to be able to offer this grant support.”
Separate to this announcement, government is meeting major automotive manufacturers and suppliers today for a seminar which will explain how firms can obtain funding from the £2.3bn Automotive Assistance Programme. Details will be reported when available.