LONDON -- Jaguar Land Rover will stop sourcing gasoline engines from Ford Motor's plant in Bridgend, Wales, and end its current contract earlier than expected in 2020, creating uncertainty over 750 jobs.
"We have informed our unions that Jaguar Land Rover intends to end our petrol engine supply arrangement slightly earlier than expected in late 2020," Ford said in a statement. "Given our long-established and successful relationship in the delivery of world-class engines, this is disappointing news for the Ford Bridgend engine plant."
JLR had decided to end its long-standing relationship with the plant, after the current contract expires three months earlier than planned in September 2020, a source close to the arrangements said. Around 750 workers, about half of the plant's total, are dedicated to JLR production, the source said.
Ford said it would "continue to look at other high technology opportunities for Bridgend in the future."
JLR, which Ford sold to Tata Motors in 2008, opened a new engine plant in England's West Midlands in 2014, and in 2015 announced a plan to double its size, taking total investment to about 1 billion pounds ($1.3 billion). The company said that in line with its contract it had served the required three years notice to Ford for the supply of the 6- and 8-cylinder gasoline engines from its Bridgend plant.
"Ford has been, and remains, an important strategic supplier to Jaguar Land Rover under an agreement which was negotiated to support our business until the end of the decade," it said.
The announcement is another blow to the Welsh plant, which is already facing potential job cuts as Ford grapples with the aftermath of Brexit and slowing growth in Europe.