Both sides are insisting that the talks are still ongoing at its Halewood plant, although owners, Tata Motors are understood to be refusing to accept the terms the Government want to impose on the loan.

Senior strategist at BGC Brokers, Howard Wheeldon, said he believed the conditions included restrictions on the Governments willingness to underwrite a £340M loan offered by the European Investment Bank (EIB) which would help partly finance the development of new greener cars.

It is also thought that demands include Tata invest millions of pounds more into JLR on top of the £940M it has already promised since taking over the company from Ford last year.

Ministers are also said to be demanding high level management control, including the right to choose a chairman and veto board decisions.

Howard Wheeldon described the government’s demands as “backdoor nationalisation” after the government said it would only guarantee £175m of £340m in loans to JLR approved by the EIB and for only six months. He also claimed the government demanded payment of a 15% premium for its role. With the Government backing, JLR would then have access to a further £450M in commercial bank loans.

The EIB today approved a whopping £340m package for Jaguar Land Rover and a £370m (400m euros) package for Nissan’s UK and Spain operations.

Jaguar Land Rover had applied for money to invest in research and technology to develop more environment-friendly cars at its Midlands and Merseyside plants. I personally think this is a bit of a lie and they desperately require the money just to stay afloat.

Lets hope they go back to building good old utility vehicles rather than these Chelsea tractors they have been churning out recently. Who needs a 4×4 in London?