Jaguar Land Rover has created 2,350 jobs in Slovakia over the past three years thanks to a £110million sweetener offered under EU rules.
The car manufacturer has been moving its production of the Land Rover Discovery model from its plant in Solihull, West Midlands to Eastern Europe since 2015.
Slovakia offered the firm £110million in state aid to move its operation overseas in a deal that is allowed by the EU, meaning as a member state Britain could not object.
It comes as the firm announced that it was axing up to 4,500 British jobs amid a downturn in China and lower demand for their diesel engines.
JLR at least partly blamed 'continuing uncertainty' around Brexit for the huge job losses, despite the move to Slovakia being confirmed before the EU referendum.
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Workers arrive at Jaguar Land Rover's Halewood Plant in Liverpool shortly after the firm announced plans to cut 4,500 jobs, mainly in the UK
Brexiteer Jacob Rees-Mogg told the Telegraph: 'Jaguar Land Rover has 110 million reasons to back the UK's membership of the EU.
'One of the disadvantages of membership of the EU is that it uses our money to move our jobs from the UK to other EU countries.
'They won't get this money once we have left. This sweetener should be looked into and we should consider withholding it from the £39 billion financial settlement.'
The £110million grant was investigated by the European Commission, but was found to be compliant with law as the factory is located in a disadvantaged area.
JLR said the 4,500 global redundancies will start will voluntary redundancies as unions promised to 'scrutinise the business case' for the cuts.
But the firm has promised UK investment with Electric Drive Units to be built in Wolverhampton and new electric Battery Assembly Centre at Hams Hall, North Warwickshire.
JLR said the 4,500 global redundancies will start will voluntary redundancies as unions promised to 'scrutinise the business case' for the cuts
Most of the cuts are expected to be in the UK, with the savings and 'cashflow improvements' coming over the next 18 months.
Ralf Speth, chief executive of Jaguar Land Rover, said: 'We are taking decisive action to help deliver long-term growth, in the face of multiple geopolitical and regulatory disruptions as well as technology challenges facing the automotive industry.'
Ford also expected to cut jobs across Europe
Car giant Ford has announced plans 'significant' cuts among its 50,000-strong European workforce under plans to make it more competitive and make its business more sustainable.
The company started consultations with unions, with details of job cuts not expected until later in the year, although staff based at Warley in the West Midlands will move to Dunton in Essex.
Steven Armstrong, Ford's European group vice president, said the company was taking 'decisive action' to transform its European business.
He said: 'We will invest in the vehicles, services, segments and markets that best support a long-term sustainably profitable business, creating value for all our stakeholders and delivering emotive vehicles to our customers.'
New all-electric vehicles will be offered for all Ford models, while there will be a more 'targeted' line-up of models in the future.
Mr Armstrong said Ford was making 'tough' decisions by undertaking a 'complete review' of its European operations.
He said the announcement was not directly linked to Brexit, but he added that Ford will have to undertake a further review if the UK leaves the EU without a deal in March.
The company pointed to a downturn in China and lower demand for the diesels which make up most of its products. In the UK, 'continuing uncertainty related to Brexit' was blamed.
Meanwhile, Ford signalled 'significant' cuts among its 50,000-strong European workforce under plans to make it more competitive and make its business more sustainable.
Jaguar Land Rover's UK workforce has grown from around 17,000 to more than 40,000 in the last six years, at its sites including Whitley near Coventry, Halewood on Merseyside, Solihull, Castle Bromwich and Wolverhampton. But employees were laid off last year.
The firm, owned by Indian conglomerate Tata, booked a £90 million pre-tax loss in the three months to September 30, which compared with a £385 million profit in the same period in 2017.
Last year it also cut around 1,000 jobs, shut its Solihull plant for two weeks and announced a three-day week at its Castle Bromwich site.
Meanwhile it has been hiring elsewhere. In China it has increased its workforce by 4,000 since 2014. And it recently announced it would move production of the Land Rover Discovery to a new plant in Slovakia with plans to hire up to 3,000 workers.
The announcement from the manufacturer is part of plans to cut costs and improve cash flows by £2.5 billion including 'reducing employment costs and employment levels.'
JLR was expected to build one million vehicles by 2020, but sales in the first eleven months of 2018 dropped 4.4 percent.
Jaguar Land Rover builds a higher proportion of its cars in Britain than any other large firm