Workers at Jaguar Land Rover will vote in the next few weeks on a 12-month pay freeze and a four-day week.
In return, staff will be promised no compulsory job losses for two years.
In a deal agreed by unions and the firm's Indian owners, Tata, the move could save Jaguar Land Rover up to 70 million each year.
A Jaguar Land Rover spokesman said: 'The unions recognise the severity of the situation and the need to take action to achieve further cost reductions while avoiding further redundancies.'
The Gaydon-based car maker cut 450 jobs in January and currently employs 15,000 workers at its factories in Castle Bromwich, Coventry and Solihull in the West Midlands and Halewood, Merseyside.