New Power Behind Jaguar's Transformation

    MAHWAH, N.J., Feb. 5 More Jaguar vehicles are to be
powered by British built engines, it has emerged.

    The announcement of the $360 million investment at the Ford Motor
Company's Bridgend engine plant today, will increase Jaguar's current engine
supply from the plant with the introduction of the new V6 & V8 engines for use
by the Premier Automotive Group.

    Bridgend was selected in competition with other engine plants in Europe
and North America.

    Currently, Ford Bridgend builds the 3.2-litre V-8 Jaguar engine for Jaguar
XJ8; the 4.0-litre V-8 Jaguar engine for Jaguar XJ8, XK8 and S-TYPE models;
and the 4.0-litre V-8 Supercharged Jaguar for the Jaguar XJR and XKR models.

    More than 600 new jobs could be created at the plant as a result of the
new engine programme, subject to European Commission approval of regional
grant assistance through the Welsh National Assembly.

    The new engines will be installed in certain Jaguar S-TYPE, XJ and XK
series and potentially in future Jaguar vehicles.  The V6 engine will power
Jaguar's newest vehicle, the X-TYPE, to be launched later this year.

    The new engine line at the facility will operate as a Premier Automotive
Group plant within a plant, similar to the current AJ V8 line at Bridgend.

    Production of the new engine range could start towards the end of 2002.

    Jonathan Browning, speaking at the Worldwide dealer launch of the new
Jaguar X-TYPE in London commented: "It's excellent news for the British motor
industry, Jaguar and our customers as we continue to extend the range of high
quality engines built at the Bridgend plant.

    "This is not just another engine plant -- this is something very different
and by bringing engine production closer to the point of installation creates
significant improvements in response times and day-to-day liaison and will
give Jaguar a greater opportunity to influence and control engine research and
development."

    The eagerly awaited Jaguar X-TYPE will shortly be launched worldwide
-- another milestone in the transition and growth of the British based luxury
car manufacturer.