HALEWOOD will cease production of the X-Type Jag at the end of this year with the loss of 300 jobs.

Luxury car maker Jaguar Land Rover also revealed plans to shut down production of the X-Type and Freelander models for at least three weeks between September and the end of the year due to tumbling car sales.

Workers were given the bombshell news today.

The X-Type, or “baby Jag”, was seen as the plant’s saviour when it faced closure in 1997 after then owner Ford announced the end of production of the high volume Ford Escort.

Jaguar chief executive David Smith said today’s shock measures were necessary to protect the company’s interests.

Mr Smith said: “Our industry has been especially badly hit by the recession and the premium sector more than others.

“Jaguar Land Rover retail sales fell by 28% in the past 10 months.

“We have taken unprecedented action to cut costs, including reduced production volumes, significant cuts to investment plans and some 2,200 job losses .

“Ceasing production of the X-Type early, with further redundancies and downtime, is necessary to protect our other investment plans.”