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Government in car bailout talks

Updated on 18 December 2008

By James Blake

The government is in talks to rescue Jaguar Land Rover, as the number of new cars built in the UK plummets.

New figures show the number of new cars manufactured in the UK last month was down a third on the same period last year.

The Society of Motor Manufacturers and Traders blamed the fall on shrinking demand and problems over getting credit.

The gloomy outlook came as the government confirmed it had held talks over the possibility of giving state aid to Jaguar Land Rover. It would be the first government bailout of a car company since British Leyland in the 1970s.

But the motor industry says any rescue package should not just focus on one company.

Richard Lambert

Alex Thomson is joined by director-general of the Confederation of British Industry.

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