The already thriving automotive sector in the UK looks set to obtain a major cash injection, with two overseas investors poised to plough around £650m into it.
Jaguar Land Rover, which is owned by the Indian firm Tata Motors, will be providing £400m for the construction of new equipment and an engine factory, as well as to expand its design facility, with the demand for the vehicles it manufactures still on the up.
Meanwhile, Zhejiang Geely Group, based in China, will put £250m into building a new London Taxi Company plant, further backing the firm that it saved from financial collapse not long ago.
Approximately 1,000 roles are expected to be created at this new factory, while the investment by Jaguar Land Rover could lead to even more. This is according to industry insiders speaking to the Telegraph, although the company remains tight-lipped on the matter.
There will also be knock-on benefits for other British businesses, including oil manufacturers and those that stock the kinds of engine lubricants, like Mobil ATF LT 71141 and Mobil 1 New Life 0W/40, needed to power the vehicles that will be built.
Both of the new plants will be situated close to Coventry, with the Geely chairman, Li Shufu, writing in the Telegraph that:
“Britain’s attractions as a centre for automotive production, flexible supply base, skilled workers and access to the European single market have already made the country a hub for vehicle production.”
Mr Li also stated that the funding reflected the UK’s importance as a destination for investment by companies in China.