Britain's biggest car manufacturer Jaguar Land Rover (JLR) could be sold to French car group PSA imminently after racking up losses of £3.4billion between October and December, according to leaked papers.
The Tata Motors owned firm has been a target of PSA, owner of Peugeot, Citroen and Vauxhall, for several months.
It is believed a 'post-sale integration document', which outlines the benefits of the two companies joining forces, is already in circulation and the firms are exploring the detail of cost savings after a tie-up.
Indian company Tata Motors denied the report, which cited sources referring to an internal 'post-sale integration document', describing cost savings.
Leaked information suggests a sale of struggling Jaguar Land Rover to French car group PSA could be imminent. Pictured, staff gathered outide the Jaguar Land Rover site in Halewood, Knowsley, Merseyside, after job losses were announced earlier this year
'As a matter of policy, we do not comment on media speculation, but we can confirm there is no truth to these rumours,' said a spokesperson for the Indian carmaker, which owns 100 percent of JLR.
Jaguar Land Rover has been struggling in recent months, making redundancies across its business and cutting back production at its plants.
In January Jaguar Land Rover announced it was to make 4,500 job cuts, mainly in the UK, following 1500 job losses last year.
The PSA deal would raise fears of cuts production in the UK and further job losses - a another major blow to Britain's flagging car industry.
PSA shares jumped after publication of the documents, before falling back after Tata released its statement, and were down 2.85 percent as of 2.31pm GMT.
'On principle we are open to opportunities that could create long-term value for PSA Group and its shareholders,' said Alain Le Gouguec, a spokesman for the Paris-based manufacturer.
PSA is setting new profitability records even as it continues to integrate Opel/Vauxhall, acquired from General Motors in 2017, and has previously signalled openness to further acquisitions.
The relative fuel-efficiency of its vehicle technologies is a valuable asset as carmakers battle to meet tougher European emissions targets and avoid huge fines.
Jaguar Land Rover has been struggling in recent months, making redundancies across its business and cutting back production at its plants. Pictured, a Jaguar E-Type Series 1 Roadster introduced 1961 - 1998
In 1951 Land Rover was handed a Royal Warrant by King George V11, and over the generations many of the Royals been transported in the vehicles. Pictured, The Queen and Prince Philip in a Land Rover on a Commonwealth visit to Australia, 1954
Jaguar Land Rover has been struggling in recent months, making redundancies across its business and cutting back production at its plants. A Jaguar and Land Rover are pictured at a show in Los Angeles
JLR, by contrast, faces one of the toughest challenges to comply with looming carbon dioxide goals - compounded by the uncertainty and disruption of Britain's protracted departure from the European Union.
Tata posted a record $4 billion loss for its fiscal third quarter ended Dec. 31, and warned that JLR would swing to an operating loss in the full year to March.
A spokesman for PSA- told the Press Association that the firm was in 'no hurry' to make acquisitions and could 'stand alone'.
However Pierre-Olivier Salmon added: 'If an opportunity comes, like Opel (Vauxhall), we will consider it.'
Jaguar Land Rover became the UK's largest car manufacturer in 2016 but sales have declined precipitously in china in the last year.
Sale in China dropped 44 per cent between July and September last year - turning China from its biggest sales market to its smallest.
Today Prince Harry beceme the first person to enjoy a sneak-peek at Land Rover’s long-awaited next generation Land Rover Defender with Dutch Invictus Games medal winner Jack Pastora
Jaguar Land Rover became the UK's largest car manufacturer in 2016 but sales have declined precipitously in china in the last year, previously the firm's biggest market
The origins of Jaguar can be traced back to The Swallow Sidecar Company which began making motorcycle sidecars in 1922. The Swallow Sidecar Company moved into car manufacture, and switched its name to Jaguar after the Second World War. Pictured the Jaguar Xj220
The company pointed to a downturn in China as a reason for the job losses and lower demand for the diesels which make up most of its products.
In the UK, 'continuing uncertainty related to Brexit' was blamed.
In February, it revealed a hefty quarterly loss of £273m in the three months to December 31, 2018.
PSA, meanwhile, has been flourishing since it bought Vauxhall-Opel in 2017.
It has returned the struggling brand to profit in less than two years and is cash-rich with revenue up 18.9 per cent in 2018 to £63.7m.
PSA chairman Carlos Tavares has made no secret of his desire to acquire the UK-based luxury car manufacturer.
Jaguar Land Rover pointed to a downturn in China as a reason for the job losses and lower demand for the diesels which make up most of its products. Picture shows a Range Rover Jaguar and Land Rover Special VIP Preview, Los Angeles
During an interview with Autocar India in April, he said he believed it would be good for PSA to have a luxury brand and that the company was 'considering all opportunities'.
Sources inside JLR have told the Press Association that despite public statements downplaying the prospects of a tie-up, 'things are moving quickly behind closed doors'.
One insider, who has seen the integration paperwork, said: 'To have a document like this in circulation at the two firms points to the
