Jaguar to fuel supply chain with a £1bn boost as Evoque demand rises By SCOTT REID Published on Saturday 12 May 2012 00:00 Jaguar Land Rover has given Britain's car parts industry a £1 billion shot in the arm and will also push ahead with plans to create a further 300 jobs. The Indian-owned carmaker is currently riding a high thanks to the success of its Range Rover Evoque model, which has enjoyed strong global demand. Jaguar Land Rover (JLR) said the £1bn investment would come on top of supply contracts worth £2bn signed in March with UK suppliers. The company - owned by Indian conglomerate Tata - is due to open a logistics operation this summer in Ellesmere Port, Cheshire, which will create 300 jobs. Solid demand for new models from the Far East and North America has helped offset weak car markets in many eurozone nations. The group has been investing heavily in its UK operations, creating hundreds of jobs, and a joint venture was recently agreed in China to help satisfy local demand. Raif Speth, chief executive of JLR, said: "The demand we have seen across the globe for the Range Rover Evoque means we are able to significantly increase what we spend with our suppliers, which is great news for the UK economy, and the thousands of jobs JLR supports in its supply chain. Our commitment to the north west [of England] will also be enhanced with the new logistics facility and this will support the future success of both our Freelander 2 and Range Rover Evoque models. The firm has sold more than 60,000 Evoques worldwide since its launch in September. Figures last month showed a steady increase in overall car production in the UK. A total of 135,456 vehicles were made in March, up 0.3 per cent on a year earlier. The vast majority were headed for export. Paul Everitt, chief executive of the Society of Motor Manufacturers and Traders, said: "Manufacturing is continuing to lead our economic recovery with automotive at the forefront of long-term growth opportunities. The major investment commitments made by global vehicle manufacturers to their UK plants and facilities are now beginning to create more jobs and stronger growth. But with a large slice of output still destined for mainland Europe, the industry remains vulnerable to the fallout from the eurozone crisis. Experts also remain concerned about over-capacity in Europe's car production sector. Yesterday's news of further investment at JLR came as Nissan unveiled a sharp jump in quarterly profits. The Japanese group has outshone domestic rivals Honda and Toyota in the past year as chief executive Carlos Ghosn has pushed aggressively into fast-growing markets such as China and Russia. Nissan's global sales reached 4.8 million units last year, a record for the company. The firm has recovered quickly from natural disasters in Japan and Thailand last year that disrupted supply chains. It recently announced plans to build a new hatchback model at its Sunderland plant in 2014, creating more than 1,000 jobs at the site and along the supply chain.