Ford, Land Rover's owners since 2000, had ordered the company’s bosses and unions to reach agreement by yesterday - or face possible closure.
There had been speculation that Land Rover production might be shifted to Ford’s Jaguar plant in Merseyside. Senior European executive at Ford, Mark Fields, had originally given staff and management from May to work out a plan for the way forward.
Last week the deadline was extended by seven days, after Fields was ‘encouraged that the team clearly recognised and defined the competitiveness gap that must be bridged’.
Ford wants Land Rover to become as competitive as Jaguar within three years, and as competitive as other car makers within five years.
On Tuesday night, the Amicus, T&G, and GMB unions said in a statement that an interim report on the turnaround plan had been given to shop stewards. They said they believed it would ‘enable us to achieve a successful outcome at the ‘road map’ discussions to be concluded with Mark Fields’.
The agreement announcement came after 60 minutes of talks. Union members at the plant will be balloted on the proposals once they are published.