Jagaur seeks approval for pounds 80m aid

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Jaguar, a division of Ford, said it hoped European Union (EU) regulators would approve a plan to produce a new, smaller, sports saloon car in Britain with government aid. Jaguar said yesterday that unless the British government was allowed to provide about pounds 80m in assistance the car would be built in the United States.

The X200 will be a slightly smaller saloon than Jaguar's existing XJ models, making it a more affordable car. It is still at the design stage.