Managers at luxury carmaker Jaguar are meeting union representatives today amid rumours that sales of the company's flagship car are slowing.

The meeting follows reports that unions - in particular the Transport & General Workers' Union - have heard that layoffs are to take place in March next year.

The company, part of the Ford group, shut down two production lines in the wake of 11 September, transferring 3,500 workers to other duties.

But it insists that its X-type car is still selling well despite the slowdown, and that no decisions on staffing at its Halewood plant in Merseyside have yet been made.

The worries of the 2,500 workers at Halewood will not have been settled, however, by a formal statement issued to staff by Jaguar's management.

"We have begun... to establish the appropriate line rates and the manpower requirements," it said.

"We will then communicate the details to our employees when the process is complete, and implement the results early in the new year."