THE Government has said it will work with BMW to guarantee the future of Rover's troubled car plant at Longbridge. BMW has already pledged to build the Mini replacement at Longbridge, but the future prosperity of the factory and its 14,000 workers depends on it winning the battle to build the mid-size replacement for the Rover 200 and 400.

Speculation is mounting that next week's Geneva Motor Show could be the venue for BMW to announce it was investing in Longbridge - a move likely to be further boosted by Government help. Stephen Byers, Secretary of State at the Department of Trade and Industry, said the Government would plough financial aid into Longbridge so long as BMW showed the same commitment to the plant. But he added that the Government would not 'bail out' an 'unsuccessful industry'.

Byers rejected claims by Tory politicians that the strength of Sterling was crippling the UK's motor manufacturing industry, and cited recent investment decisions by Vauxhall, Toyota, Nissan, Honda and Peugeot as evidence that car making has a healthy future in the UK.