This plan of action will restructure the company and deliver positive cash and profits that are essential to re-invest in the business and secure its future, said the statement.

The firm said it would build a new generation of lightweight vehicles, with hybrids and electrification technology which it said will significantly reduce fuel consumption and CO2 emissions.

Around £800 million has been dedicated to environmental innovation and the new plan includes building the Range Rover LRX, which the firm said will be the smallest, most fuel-efficient Range Rover yet.

Today's announcement included news that a production version of the Land Rover LRX concept car will be built next year at Halewood. Designed and engineered at Land Rovers site at Gaydon in the West Midlands, it will be the smallest, lightest and most efficient vehicle the company has produced.

Phil Popham, managing director of Land Rover, said: "The production of a small Range Rover model is excellent news for our employees, dealers and customers. It is a demonstration of our commitment to investing for the future, to continue to deliver relevant vehicles for our customers, with the outstanding breadth of capability for which we are world-renowned.

"Feedback from our customer research also fully supports our belief that a production version of the LRX concept would further raise the desirability of our brand and absolutely meet their expectations."

Gerry McGovern, Land Rover design director, said: "The new vehicle will be a natural extension to the Range Rover line-up, complementing the existing models and helping to define a new segment."

Bert Hill, regional officer of the GMB union, said: "We are now in a meeting with the company to hear details of their plans. GMB will be opposing everything we have heard so far. We will fight the company on this - of that I have no doubt."