Ford is considering selling its Browns Lane plant near Coventry - the home of its iconic Jaguar brand since 1928.

"The possible sale of Browns Lane is one of several options that is currently being studied," a Jaguar spokesman said.

He would not confirm reports that Ford, the world's third-biggest carmaker, intended to cut Jaguar production by 6 to 7% in 2006 amid slack demand.

"It is too early to comment on production figures for 2006 as we are still in the process of finalising our plans at this stage," he said.

Under pressure to curtail chronic losses at Jaguar, Ford last year cut 1,150 Jaguar jobs in England, scaled back production at the Browns Lane plant and shifted output to another factory near Birmingham.

Workers at Browns Lane now make wooden trim for Jaguar interiors or have administrative jobs. No cars are built there.