JLR targets NATO defence deal as Solihull plant faces uncertain future

Jaguar Land Rover is targeting defence contracts with NATO countries as the company looks to tap into rising military spending across Europe.

The company is in discussions with NATO countries over its new Defender Wolf Series II, a military version of the Defender designed and engineered in the UK. JLR has also established a dedicated defence division as it looks to expand its presence in the military vehicle market.

The move comes as JLR faces a difficult period, with the company recently announcing plans to cut around 4,000 jobs globally as it attempts to save £1.7 billion.

JLR is also competing for a £900 million Ministry of Defence contract to replace the UK's ageing fleet of military vehicles. It is facing competition from General Motors and Ineos Automotive, with a decision expected in early 2027.

What it means for Solihull

The developments will be closely watched in Solihull, where JLR operates its major manufacturing plant at Lode Lane.

The Solihull site is JLR's principal Land Rover assembly plant and employs thousands of people, making the company's future plans particularly important to the local economy.

However, the new defence push does not mean military Defenders will be built at the Solihull plant.

The Defender Wolf Series II is being presented as a global military vehicle, with the vehicle designed and engineered in the UK and its engine produced in Wolverhampton.

JLR has also stressed that its move into defence is not connected to the planned 4,000 job cuts.

The company says defence contracts could provide new opportunities for the wider UK automotive industry and its British supply chain.

For Solihull, the developments provide a potential new source of business for one of the area's biggest employers, but they come at a time when the future direction of the Lode Lane plant remains under close scrutiny.

The defence plans could therefore provide a new opportunity for JLR as the company continues to deal with weaker demand, higher costs and the fallout from its recent difficulties.