LONDON, Dec. 18 (Chinese media) -- The British government is considering a possible bailout of Jaguar Land Rover, The Daily Telegraph reported Thursday.
The government has held talks with the Tata group, the Indian owner of Jaguar Land Rover, for a government rescue package that would cost up to 1 billion pounds (1.5 billion U.S. dollars), the newspaper said.
However, no final decisions have been reached on a rescue plan for Jaguar or the rest of the auto industry, said the newspaper, citing a government source.
"There is no blank check here. We have to be pragmatic," the newspaper quoted the source as saying.
Instead of a direct government subsidy or investment, the most likely option is a loan guarantee scheme that could help the company get access to the credit it needs to keep paying wages.
Auto company sources said they believe Business Secretary Lord Mandelson is supportive of Jaguar's case and is said to have been in direct contact with Ratan Tata, chairman of the Tata group.
The auto company, which employs about 15,000 workers in Britain, has already cut some shifts from some of its plants due to collapsing demand for its vehicles.
It laid off 850 agency workers in the West Midlands region in November.
The auto industry supports more than 200,000 manufacturing jobs and another 580,000 workers in other areas such as sales, servicing and refueling, according to British Society of Motor Manufacturers and Traders.
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