Jaguar Land Rover has announced a manufacturing partnership with Austrian company Magna Steyr to build some of its vehicles.
The partnership has been described as one that will “complement” UK production rather than signalling a move away from the company’s core UK manufacturing base.
Jaguar Land Rover chief executive Ralf Speth emphasised the deal did not pose a threat to UK production.
He said: “The UK remains at the centre of our design, engineering and manufacturing capabilities.
“Partnerships such as this will complement our UK operations and engineering.”
The Magna Steyr partnership is thought to be as a result of the firm’s sustained growth and the fact UK plants in Solihull, Castle Bromwich and Halewood are almost at capacity.
Jaguar Land Rover has not revealed which models from its line-up will be built in Magna Steyr’s factory in the Austrian city of Graz.
The company has a fast-expanding line-up and plans to bring 12 new or refreshed vehicles to market over the course of 2015-16. It is also set to invest £3.6 billion on new vehicle development and expansion.
Jaguar Land Rover currently produces the Range Rover, Range Rover Sport, Land Rover Discovery, Land Rover Defender and Jaguar XE in Solihull.
The Jaguar plant in Castle Bromwich manufactures the XF, XJ and F-Type, while the Range Rover Evoque and Land Rover Discovery Sport are produced in Halewood.
The company already has overseas factories in India and China and is currently building a production facility in Brazil.
Magna Steyr already builds vehicles for other car manufacturers, including the four-door Rapide for Warwickshire-based car-maker Aston Martin.
The company is part of Canadian-based firm Magna International and the largest contract manufacturer of vehicles in the world, producing more than 200,000 vehicles a year at present.
It also works on developing vehicles and components for car-makers and developed Mercedes-Benz’s 4Matic four-wheel drive system.
In the past vehicles it has produced in Graz include the BMW X3, the ,Peugeot RCZ, the Mercedes-Benz E-Class and the Mini Countryman.
Jaguar Land Rover is still thought to be planning another European factory, with the likely location tipped to be Eastern Europe.