Production of the Freelander will move to Merseyside

The four-wheel drive vehicle is currently made in Solihull but the company plans to move production to the Jaguar factory in Halewood.

Land Rover said on Friday the move would create 1,000 jobs at the Halewood plant and was expected to take place within the next two years.

The company said it would improve efficiency and was "job neutral" so no jobs would be lost in the UK.

The Solihull plant, which is undergoing a �200m investment, will concentrate on production of its larger premium and specialist 4x4 vehicles.

'Excellent reputation'

The chairman and chief executive of Jaguar and Land Rover, Bob Dover, said: "Given the close collaboration between the two companies, this is a rational business decision.

"The retention of Land Rover vehicle assembly in the UK means that this move is 'job neutral'.

"In other words, our objective is to create as many jobs in Britain by this action as we will take out."

He added: "Halewood has an excellent reputation for building higher volume premium vehicles and the Solihull plant has over 50 years' experience of building larger premium and specialist 4x4 vehicles.

"The reduction in production complexity will certainly benefit Solihull and its products and will allow the plant to focus on improving competitiveness."

Union reaction

Dave Osborne, the Transport and General Workers Union's national secretary for the car industry, said: "Given previous commitments by the company the unions note that Solihull will remain the primary site for Land Rover.

"However, the workforce in the Midlands will be extremely disappointed, even resentful with today's news given their commitment over the last two years since Ford took control, to turn round a $250m annual loss to break even.

"We do note that the new vehicle will be built in the UK which is good news for the Halewood plant and the jobs to be created on Merseyside."

Operations manager at Halewood, Colin Tivvy, said the move underlines the plant's reputation for productivity and quality.

"It's really good for Jaguar at Halewood," he said.