David Smith, managing director of Jaguar Land Rover, has called for investment from the UK government for carmakers to use to develop green technology.
Smith said carmakers were in need of the same level of state aid that is being offered by the US government, up to £14.2 billion, to help American manufacturers.
Smith also said the Government needed to boost consumer confidence with tax cuts.
Smith told The Times: “If the US needs to take a bold move we do too, and the quicker the better.
“If we let this go on the impact on manufacturing will be serve and that will also have an impact on jobs.”
Industry commentators have warned that Jaguar and Land Rover are more vulnerable than other carmakers because they are overly exposed to the premium and large vehicle segments of the market.