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All of Jaguar's sports and saloon car manufacturing will return to its plant in north Birmingham after the company announced a new £100 million investment which will "future proof" the base.
The luxury car brand said today production of the Jaguar XE sport sedan would shift from its base in Solihull to the factory in Castle Bromwich.
There will be investment in new press lines, body shops and final assembly halls to support production while the Solihull plant will continue to operate three shifts, 24 hours a day producing the Jaguar F-Pace and Range Rover Sport.
Wolfgang Stadler, Jaguar Land Rover's executive director of manufacturing, said: "Jaguar Land Rover has invested £3.5 billion in its UK plants since 2010 - more than any other manufacturer.
"The investment to create two centres of excellence in aluminium vehicle manufacturing, utilising shared technologies was deliberate, giving us the flexibility to quickly respond to consumer demand for our growing range of products.
"With global sales rising year on year and a number of exciting product actions in the pipeline, our UK manufacturing teams have much to be optimistic about."
This latest investment brings Jaguar's total at Castle Bromwich to more than £500 million over the past two years at a plant which was slated for closure in 2008.
The capital supports production of the XF, F-Type and XJ which are also built there.
Jaguar is also currently building major industrial space on the site of the former Dunlop Motorsport factory, next to the plant in Castle Bromwich, which will be used for receiving, storing and transporting components around the site.
The factory's operations director Nicolas Guibert said: "2016 is a pivotal year...the arrival of the XE sees us increase our model lines and volume.
"This plant has a rich heritage and is undergoing its most significant transformation in decades with major infrastructure projects either complete or under way.
"The commissioning of our all new press line and launch of our body shop to support the introduction of XE means Castle Bromwich is future proof."
Climate change and industry minister Nick Hurd said: "Our world-class automotive sector continues to go from strength to strength and this announcement is more good news for the local economy and the Midlands as a whole.
"JLR has invested heavily in skills and new innovative manufacturing techniques over the years and the demand for its vehicles is the result of that long-term investment."
