Jaguar Land Rover has confirmed it is in talks with the government amid reports it wants a £1bn loan to help it cope with the economic downturn.
The firm, which has plants at Solihull and Castle Bromwich in the Midlands and at Halewood, Merseyside, said it faced "unprecedented trading conditions".
The company went to a four-day week in August and has extended a voluntary redundancy scheme to 600 staff.
A spokesman said it believed the motor industry needed government help.
He said intervention was required to help the supply chain, support investment in carbon reduction technology and stimulate consumer demand.
The spokesman added: "The automotive industry is facing unprecedented trading conditions as a direct fall out of the banking crisis and turbulence in financial markets and we are of course keeping government appraised of the impact on our business.
"We are not going to comment on speculation on the content of confidential discussions with government."
The firm, based in Gaydon, Warwickshire, was bought from Ford by Indian motor giant Tata in March for £1.15bn.
It employs about 16,000 staff at plants in the West Midlands and Merseyside.
The firm has plants in Solihull and Castle Bromwich
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