The leader of Britain’s biggest union yesterday called for government intervention to prevent private equity taking over Jaguar and Land Rover.

Tony Woodley, joint general secretary of Unite, said if private equity were the only choice for the two famous British brands then ministers must try to stop the sale. “If the choice is only asset-stripping private equity which independent studies for the union have shown drive down pay and conditions then there should be direct government intervention.”

Unite is arguing that the car industry should be treated as strategically important because of the job it supports directly and in the supply chain and the local economy. It estimates that for every direct job in a car manufacturing plant there are two dependent in components makers and other suppliers.

Ford yesterday confirmed that it had appointed financial advisers – Goldman Sachs, Morgan Stanley and HSBC – to look at the future of the two marques. A spokesman said: “We are working with advisers to determine the best future for Jaguar and Land Rover.”

The move comes only months after Ford sold Aston Martin in a widespread restructuring to try to restore it to profitability. Last year the US giant lost $12.7 billion. Its Premier Automotive Group, which includes Jaguar, Land Rover and Sweden’s Volvo, is profitable but that is believed to be on the back of Land Rover and Volvo with Jaguar remaining stubbornly loss-making.

Ford is expected to want between £3 billion and £4 billion for the two brands. They are likely to be sold together because of the integration that Ford has implemented. The two divisions share components, design and production and research facilities. The Prime Minister’s spokesman said that the Government had been in touch with Ford. He said: “We still believe that both Land Rover and Jaguar are highly successful companies and will have a highly successful future.”

Alistair Darling, Trade and Industry Secretary, yesterday spoke to Lewis Booth, head of Ford Europe, to emphasise the importance of the two brands remaining in Britain.

A spokeswoman for the Department of Trade and Industry said: “We believe Jaguar and Land Rover are very important to the country. It is also important to keep people informed as to what is going on over the coming weeks.” But she ruled out intervention, saying that a sale would be a matter for the company.

Unite is also pressing for a meeting with Mr Booth.

Garel Rhys, automotive expert at Cardiff University Business School, said there were doubts about private equity in the motor industry because of the long lead times involved in developing new products. But he said private equity companies were the ones most likely to be involved because most of the large car companies are either in difficulty, have overcapacity or are already represented in the same segment of the market as Jaguar and Land Rover. But he added: “If Ford, with all the resources it has had, has not been able to make a success of the two brands, people looking at them must wonder what they can do.”

Unions fear that private equity would impose harsh cost cuts and job reductions on the businesses.

Top marques

Jaguar was founded by Sir William Lyons in 1922 and he gave the business its name in 1935. It merged in 1966 with British Motor Corporation and was later floated separately in 1984. Ford bought Jaguar in 1990

Land Rover was a division of Rover and launched its first four-wheel-drive vehicle in 1948. The Range Rover was released in 1970 and the Discovery in 1989. BMW bought the company in 1994 and sold it to Ford six years later

Times Recommends

• Lies and cover-up at MG Rover exposed by report
• High oil prices push manufacturing costs up
• Primark founder steps down as chief executive