Ford has provided its Jaguar subsidiary with a £1.2bn cash injection to cover losses and investment write-downs at the luxury car maker. Jaguar said the financial support had taken the form of preference shares issued to the US parent company.

"If nothing else it underlines, despite rumours, Ford's ongoing commitment to Jaguar," a Jaguar spokesman said. It made a loss of £430m last year. The company has struggled with poor sales, with its US market affected by the weakness of the dollar.

Ford itself is expected to announce big job cuts and a round of plant closures in the US next month.