ROVER and Chrysler UK have both denied they are to co-operate to build cars in the UK and US. The denials follow press speculation that Rover parent company BMW is in negotiation with Chrysler in the United States over a possible joint venture.

Rover does have an agreement with Chrysler to build engines for the Mini at a plant in Brazil, but a spokesman said there were no plans for any further cooperation in the short term. A Chrysler UK spokesman added: 'The two companies are talking about engines but the speculation about the cars is not true.'