UK government weighs bailout package for Jaguar Land Rover

The British government is considering a bailout for the luxury car maker Jaguar Land Rover and is in talks with the Tata Group, for a rescue package.

Jaguar Land Rover was "under particular strain" from the economic downturn, business secretary Lord Mandelson said last night after talks with the car manufacturer.

Jaguar''We are analysing very carefully what is going on in the sector and we will make good judgements in good time if it is appropriate for the government to take any action or if it is possible for us to do so,'' Mandelson told Sky News.

''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,'' he said.

The company had last month sought a £1 billion loan, after steep declines in production and sales forced it to lay off around 850 IT and engineering staff because of "severe" global car market conditions.

Jaguar Land Rover currently employs 15,000 people and has been operating on a four-day week since August.