MercoPress. South Atlantic News Agency

Rescue plan discussions for British icons Jaguar-Land Rover

British car manufacturer Jaguar Land Rover is in discussions with the government over a state bail out, Peter Mandelson has announced.

The Business Secretary said while the company's Indian owners, Tata, were primarily responsible for ensuring the survival of the firm, the government was communicating with all the car manufacturers and Jaguar Land Rover in particular. Mandelson told Sky News: "I'm talking to the car manufacturers. We are analysing very carefully what is going on in the sector and we will make good judgments in good time". "We are looking at the sector as a whole. I have had discussions with the owners and management of Jaguar Land Rover in particular, because they argue that they are under particular strain". The confirmation that talks are under way follows last week's revelation that the government had urged all automotive businesses to investigate whether they were eligible to take part in any of the schemes already launched by the government which were designed to stimulate the economy. Mandelson added that it was too soon to say whether Jaguar - which employs around 15,000 people in the UK - would need state finding to survive or not. All car manufacturers have been hit by declining sales as consumers cut back on purchases of 'big-ticket' items - which include cars as well as other expensive one-offs such as furniture - and last month Jaguar said it was making 850 staff redundant. (City Wire)