Jaguar Land Rover is shifting all production of its Discovery model to Slovakia amid falling diesel sales, vehicle taxes and uncertainty about Britain's departure from the European Union.
The company says the decision, which is likely to affect hundreds of jobs, "is a tough one but forms part of our long-term manufacturing strategy as we transform our business globally."
Discovery production in Birmingham will move to Slovakia early next year.
Jaguar also said it will invest millions in Solihull in the west Midlands, where the new Range Rover and Range Rover Sport models will be built.
Profits have been under pressure, with pre-tax profit slumping to 364 million pounds ($487 million) in the three months to March 31, from 676 million pounds in the same period last year.