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Jaguar Land Rover’s decision to shift production of the Discovery to Slovakia is part of a huge investment in technology at the Solihull plant, Business Secretary Greg Clark said.

Mr Clark said it was wrong to see the decision to shift production away from Solihull as a downgrade. In fact, it was part of a plan to prepare the Solihull plant for production of the next generation of the Range Rover and the Range Rover Sport, he said.

The upbeat view was echoed by trade unions, and by Labour MP Jack Dromey, whose Erdington constituency includes the Jaguar Land Rover (JLR) plant in Castle Bromwich.

Mr Dromey said on Twitter: “The £500 million investment in the Solihull JLR plant is welcome.”

(Image: Birmingham Mail)

He also highlighted JLR investment at a plant in Halewood, Merseyside, where the next-generation Evoque vehicle will be manufactured. Mr Dromey said: “Now we need the future of the Castle Bromwich Jaguar plant to be secured.”

Des Quinn, national officer of trade union Unite, said: “Jaguar Land Rover’s investment into its Solihull plant and confirmation that the next generation of Evoque will be built at Halewood in Merseyside secures the long-term future of both plants.”

The JLR announcement means some agency jobs in Solihull are at risk, and has been linked to uncertainty about Brexit and falling demand for diesel cars. But while these issues have been causing concern for carmakers, they do not appear to be responsible for the Discovery move.

Concerns were raised in the House of Commons by Liberal Democrat leader Sir Vince Cable. He asked: “Following the loss of the Discovery model to Slovakia, which was a decision at least partly influenced by Brexit, what steps is the Minister taking to head off the risk to Jaguar Land Rover’s exports to China where the rules of origin will conflict with the interests of the company in the event that we lose the customs union and we no longer have sufficient UK content in the cars?”

Mr Clark said: “He is wrong about the decision that was made. In fact, it is a decision to prepare Solihull for the next generation of the Range Rover and the Range Rover Sport.

“JLR described that as a huge investment and a technology upgrade in Solihull, so I hope he will welcome that.”

However, MPs also pressed Mr Clark on the impact of Brexit and the Government’s attempts to discourage the use of diesel.

Conservative Lucy Allan, MP for Telford, said: “Hundreds of jobs in my constituency rely on the Jaguar Land Rover supply chain. Will the Secretary of State tell the House what he is doing to help car manufacturers to deal with the uncertainty of Brexit and the fall in demand for diesel vehicles?”

And Matt Western, Labour MP for Warwick and Leamington, called on the Government to introduce a scrappage scheme. This would involve the Government subsidising the cost of a new car for motorists who scrapped their old diesel vehicles.

Mr Clark highlighted the importance of getting a Brexit deal allowing components to be imported from Europe, as well as supporting component-makers in the UK.

He said: “She is right to comment on the supply chain. A big part of the automotive sector deal, which we concluded with the sector, is to boost the proportion of components that are sourced in the UK.

“This is a joint commitment that we make, as part of the industrial strategy, but she is also right to draw attention to the importance of our continued ability to trade with the rest of the European Union, free of tariffs and with low friction, so that we can maintain the just-in-time model, which is so crucial to our automotive sector.”