Car maker Jaguar Land Rover is in talks with the government for state aid, business secretary Peter Mandelson has confirmed.
The firm, bought by Indian conglomerate Tata last summer, employs about 15,000 in the UK but like its rivals is struggling in the face of slowing demand.
Although the government has discussed the possibility of financial aid with the company, there will be no "open cheque book" Lord Mandelson said.
In an interview with Sky News, Lord Mandelson said: "We are analysing very carefully what is going on in the [car] sector and we will make good judgments in good time if it is appropriate for the government to take any action or if it is possible for us to do so.
"I have had discussions with the owners and management of Jaguar Land Rover in particular, because they argue that they are under particular strain."
Although the business secretary added there would not be a long list of bailouts, he suggested the car industry is of particular importance.
"It is not just the carmakers themselves and all those employed directly in the production of cars, it is the huge supply chain of many small and medium-sized enterprises that supply components and other elements to that very important manufacturing process," he told the news channel.
Last month, Jaguar Land Rover said it would be making 850 IT and engineering staff in the West Midlands redundant as the manufacturer cuts back on production.
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