Jaguar Land Rover will stop sourcing petrol engines from Ford's plant in Bridgend, Wales, and end its current contract earlier than expected in 2020.
"We have informed our unions that Jaguar Land Rover intends to end our petrol engine supply arrangement slightly earlier than expected in late 2020," Ford said in a statement.
"Given our long-established and successful relationship in the delivery of world-class engines, this is disappointing news for the Ford Bridgend Engine Plant."
JLR had decided to end its long-standing relationship with the plant, after the current contract expires three months earlier than planned in September 2020, a source close to the arrangements said.
JLR accounts for about half of the plant's petrol engine production, the source said.
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