Jaguar Land Rover (JLR) could create up to 1,000 jobs at its Merseyside facility following strong demand for the Range Rover Evoque vehicle.
According to The Sunday Times, JLR intends to embark on a recruitment drive at the Halewood site where it currently employs 4,500 staff.
It is also believed there has been proposals to manufacture new models at the site, in a move could see the introduction of 40 new models by 2018.
Additionally, JLR hopes to double car sales to 750,000 by 2015.
A JLR spokeswoman said the creation of more jobs was “speculation” but did not deny yesterday’s report.
Recruitment plans are believed to be at an advanced stage but could be delayed by the ongoing threat of strike action by DHL workers, who last month demanded equal pay with their JLR counterparts.
Funding is expected to come from the £2.7bn put aside for capital spending this year by JLR, which last month announced record high sales.
Its Solihull factory in the West Midlands could also be expanded to cope with new Jaguar launches.