Car giant Jaguar Land Rover is to invest billions of pounds in its business, creating thousands of new jobs and safeguarding its UK factories, including two in the West Midlands, it has announced.
The new jobs will include 1,500 at the Halewood plant on Merseyside next year, while the other two manufacturing sites at Castle Bromwich and Solihull in the West Midlands will be retained, ending fears for their future.
The company said it had ambitious plans for new models and volume growth and announced a "landmark" pay and conditions deal with trade unions.
The agreement, which trade unions will recommend to their members, includes a two-year pay deal worth 5% from next month, with a further rise of at least 3% from November next year.
Jaguar Land Rover said it will retain three plants in the UK, leading to the creation of thousands of new jobs in Britain over the next decade and billions of pounds-worth of investment. The number of models in its range will be "significantly increased".
Jaguar Land Rover chief executive Ralf Speth said: "This is a triumph for all concerned. We have ambitious plans for growth and the success of our products around the world and this agreement will allow us to accelerate and realise those plans.
"The agreement is a great deal for our workers and the company and we can now really get on with working together to achieve an even more exciting future for the Jaguar and Land Rover brands.
"We have already started by beginning to hire 1,500 new employees to support the launch of the new Range Rover Evoque at our award-winning Halewood factory in Liverpool.
"Our parent company Tata supported us through the recession and our employees also made sacrifices but now we are seeing a great turnaround in the business and everyone involved - our employees, our customers and our Tata shareholders - will benefit from this agreement. This is truly the beginning of a new era for Jaguar Land Rover."
The union Unite said it was "fantastic news" for the company and its workers.
Jack Dromey, Labour MP for Birmingham Erdington, which covers the Castle Bromwich plant, said it was "good news in bleak times".
Mr Dromey, who was former deputy secretary general for Unite, added: "Castle Bromwich built the Spitfire during the war and two generations of the Jaguar. This remarkable agreement will see £5 billion of investment, securing the future of the three great plants in Britain. It is a triumph for the workforce, Unite and the company."
Another Birmingham MP, Richard Burden, who chairs the All Party Motor Group in Parliament, described the news as good for manufacturing industry and for the West Midlands.
The Labour MP for Northfield added: ‘JLR is one of the central foundations of the motor industry in the West Midlands. The company plays a key role in maintaining the skill base right across the Midlands – not only in JLR plants, but also in the wider supply and component industries.
‘I also appeal to the government, as they make their decisions in the weeks and months ahead, to think about the impact their actions will have on manufacturing and to remember its importance to the West Midlands and the economy as a whole.’