BMW has vigorously denied that it is in talks with Volkswagen over a new Longbridge rescue plan. Industry speculation is that VW remains prepared to buy its Bavarian rival or enter into a partnership in the wake of the European Union decision to make a full investigation of the UK Government's £152 million revitalisation aid package to BMW.

While Volkswagen was not prepared to comment, a BMW spokesman said: 'We have not been speaking to Volkswagen.' A Rover spokesman called the reports of a Volkswagen/BMW tie-up 'absolute nonsense'.

On reports that VW wants to build its Golf platform at Rover's Longbridge plant - which could then be used on the Rover 25 and 45 replacement, the R30 - the Rover spokesman said: 'The model strategy and engineering programme for the R30 is at an advanced stage. We don't need VW's input.'