Jaguar says it does not want to flood the market with its cars

The Ford-owned company's 3,000-strong workforce will produce cars for just three days next week at its Halewood plant in Merseyside.

Jaguar has already dropped plans to make 200,000 cars a year, and is ending production at its Browns Lane plant in Coventry later this year.

On Wednesday, Ford reported a drop in first-quarter profit to $1.2bn (�630m).

'Clear strategy'

The X-type, dubbed the Baby Jag by critics, was launched in 2001, and about 66,000 were sold last year.

However, Jaguar said no cars were made at Halewood last week, as part of its drive to scale back production.

"We do not want to flood the marketplace with cars, this is a very clear strategy," a spokesman for the company said.

"We want a lower volume, higher revenue business and to concentrate on the higher series cars - the more profitable vehicle lines."

Jaguar's sales fell 21% in the first three months of 2005, as a result of refocusing its car range in the US towards top-of-the-range models, the company said.

Production line staff at Halewood will work on Tuesday, Wednesday and Thursday next week, Jaguar said.

The end of car production in Coventry will result in 1,150 job losses, although the Browns Lane site will remain Jaguar's headquarters.