Jaguar Land Rover has been in talks with the Government's business secretary Lord Mandelson over the possibility of state aid for the carmaker.

The BBC website said Lord Mandelson confirmed he had spoken with representatives from the manufacturer regarding financial help.

However he said no decision had yet been made and it was too early to tell if any car firm needed help plus ministers did not have an open cheque book.

This year Jaguar Land Rover cut output at its plants in Solihull, Castle Bromwich and Halewood.

The company employs about 15,000 people in the UK.