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Business minister Lord Mandelson said no decision had been made and it was too early to conclude whether or not any car firm needed assistance.
"I have had discussions with the owners and management of Jaguar Land Rover in particular, because they argue that they are under particular strain," he told Sky News.
Jaguar Land Rover currently employs around 15,000 people in the UK.
Last month the firm announced it is facing "unprecedented trading conditions".
Recent figures show that new car sales have slumped across Europe.
Data from European Automobile Manufacturers' Association fell by 7.1 per cent over the first 11 months of the year.
In the UK, sales dropped by 36.8 per cent, reports The Guardian.
