Jaguar vehicles – seen in many quarters as the archtypal British luxury car –
are to be powered by British-built engines, it has emerged.

The announcement of the $US360 million investment at the Ford Motor Company’s
Bridgend engine plant today will increase Jaguar’s current engine supply from
the plant with the introduction of the new V6 & V8 engines for use by the
Premier Automotive Group, which also includes Volvo and Aston Martin.

Bridgend was selected in competition with other Ford engine plants in Europe
and North America.

Currently, Ford Bridgend builds a 3.2-litre V8 engine for the XJ8; a 4.0-litre
V8 for XJ8, XK8 and S-type models; and 4.0-litre supercharged V8 for the XJR
and XKR models.

More than 600 new jobs could be created at the plant as a result of the new
engine programme, subject to European Commission approval of regional grant
assistance through the Welsh National Assembly.

The new engines will be installed in certain S-type, XJ and XK series and possibly
in future Jaguar vehicles.

The V6 engine will power Jaguar’s newest vehicle, the X-type, to be launched
later this year.

The new engine line at the facility will operate as a Premier Automotive Group
plant within a plant, similar to the current AJ V8 production line at Bridgend.

Production of the new engine range could start towards the end of 2002.