The plant has made the move after the model it produces - the Baby Jag or X-type - faced difficulties attracting buyers in Europe.

All 2,200 staff at the Halewood plant, which produced 75,000 models last year, are affected by the shutdown.

The X-type has struggled in Europe because its competitors have diesel models, for which demand has increased.

Pay 'unaffected'

Bosses at the plant said the closure is temporary.

It is hoped a diesel version of X-type will be in showrooms by the end of the year.

Unions have also been reassured that workers pay levels will not be affected.

In January David Crisp, Jaguar's corporate affairs manager, said the "down time" would be used to redress production and stock levels.

"We are reviewing [levels] on an ongoing basis," he said.

Because of the lack of diesel model in Europe, Mr Crisp said the company had not been "competing on a level playing field".