Jaguar Land Rover has announced it will become an all-electric brand by 2030.
The car manufacturer, which operates plants across the Midlands, has vowed to keep all of its UK sites open, with electric vehicles due to made at its Solihull plant.
It is not yet clear what changes will be made to the Castle Vale site, which currently makes Jaguar vehicles.
The new global strategy is the start of the company's journey to becoming a net-zero carbon business by 2039.
The firm say their manufacturing footprint is to be 'retained, rightsized, repurposed and reorganised'.
ITV News Central Business Correspondent, Mark Gough explains.
Jaguar Land Rover today said all its Jaguar models will now be electric, high end and luxury.
The world has seen the rise of Tesla, making Jaguar the Tesla of the UK seems to make sense. Jaguar cars recently have always been luxurious, but not sold in big numbers - the company has relied on the Land Rover models to bring in the bulk of the cash.
So the new JLR CEO Thierry Bollore had to decide what to do with the Jaguar brand - and making it a luxury electric brand is his plan.
The good news = not factories to close.
But Castle Bromwich will stop making cars and be re-purposed, Solihull will make the electric Jaguars and the Land Rovers as they do now.
The replacement for the electric XJ which was going to be made at Castle Bromwich has been canned - it doesn’t fit in to the new electric Jaguar range.
Gaydon becomes the de-facto new HQ with the management team having moved there already from Whitely.
But - words like streamlining, right-sizing, flattening the company structure were also mentioned today. The firm says it will “substantially reduce and rationalise its non-manufacturing infrastructure”.
The firm has grown to be a million-car a year operation - they’re way short of that. They have too many people. There are no firm decisions yet and what kind of job losses we may be looking at, but it’s safe to say there will be job losses.
CEO Thierry Bolloré has indicated the set up of the firm will change, he said: "Manufacturing plants stay but the firm needs streamlining and to be right-sized."