Six hundred jobs could go at Jaguar Land Rover after a voluntary redundancy scheme for 198 volunteers was "heavily over-subscribed".
The programme has now been extended across the firm's plants at Halewood on Merseyside and Solihull and Castle Bromwich in the West Midlands.
The firm, owned by Indian motor maker Tata, employs around 15,000 workers in the UK, and volunteers are being offered nine months salary, plus a full pension for those over the age of 60.
Chief executive David Smith said: "These are necessary actions to manage our business through a very challenging period." Sales of Land Rover are down for this year, in line with most other car firms, although sales of Jaguars have increased.
The company said that because of falling demand caused by the global recession it was "prudent" to extend the redundancy programme to hourly-paid workers involved in manufacturing and product development.
Copyright © PA Business 2008