A Jaguar spokesman has assured workers that an agreement to stop redundancies will be honoured, despite the head of parent company Tata warning of possible job cuts.
Ratan Tata said in an interview with Sky News that job cuts will be made unless the UK government can guarantee £500m in loans.
He added that the damage would be 'devastating' if ministers did not decide to help.
Speaking about the threat to the UK motor industry he said: "If funds are not available a company will not be able to run.
"So layoffs will take place, redundancies will take place, or in some cases, as has already happened in the UK, but not with us, plants have closed.”
But the comments appeared to go against a deal to avoid compulsory redundancies that was made between Jaguar Land Rover and its workers last month.
The workers voted for a pay freeze and a shorter working week in exchange for being guaranteed their jobs for two years. The deal is due to be phased in at the beginning of next month.
A spokesman for Jaguar said that the deal would be honoured.
“The contract is in place with the workforce and there would be an enormous storm if it was broken," said Don Hume, Jaguar Land Rover's Corporate Affairs Director. "This is an agreement that will be honoured.”
Jaguar Land Rover employs around 15,000 workers in the Midlands and Merseyside.
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