BUSINESS minister Ian Pearson has insisted that talks over the future of troubled car manufacturer Jaguar Land Rover (JLR) were ongoing despite reports that negotiations to save the company were on the brink of collapse.

Several reports have suggested that JLRs Indian owner Tata is ready to cease discussions due to what it sees as unreasonable demands from the Treasury.

The company, which employs 2,000 people at its Halewood plant, wants Government loan guarantees to help see it through a recession which has seen luxury car sales slump.

Mr Pearson denied the reports of a talks breakdown but conceded the firm had not responded to proposals tabled by the Government last week.

In the House of Commons yesterday, he said: Those reports have been denied by Tata. Discussions are ongoing.

The Government regards JLR as a viable company with good long-term prospects. We want to see JLR through difficult trading times and to provide stability for the company and its employees.

Thats why we have been having confidential discussions with JLR and its parent company over both the short and long-term financing and its business plans, and these negotiations are ongoing.