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Rover is creating 800 new jobs at its Oxford plant in order to build up production of the new R75 saloon car.

Rover is linking up with Caterpillar Logistics to set up a major new car parts warehouse at Desford near Hinckley, which will create 250 jobs.

Rover is creating 1,000 jobs in order to produce its new executive car at its Cowley plant in Oxford, and is expanding capacity to build 150,000 units a year.

Land Rover is taking on an additional 300 workers at Solihull to cope with higher than expected demand for its new Freelander vehicle.

Rover Group is to recruit a further 100 specialist engineers to develop new cars at its engineering centre in Gaydon.

Rover still wants to regain control of Unipart, in which it has a 20% stake.