A union which represents thousands of Jaguar Land Rover staff has called for clarity after reports the luxury car maker could be sold.
Leaked information suggests flourishing French car group PSA - owner of Peugeot, Citroen and Vauxhall - could be about to purchase JLR .
It is understood a "post-sale integration document" - which outlines the benefits of the two companies joining forces - is already in circulation and both firms are exploring the details of cost savings.
A spokesman for PSA said that the European firm was in "no hurry" to make acquisitions and could "stand alone".
But PSA spokesman Pierre-Olivier Salmon added: "If an opportunity comes, like Opel (Vauxhall), we will consider it."
Sources inside JLR, meanwhile, and contrary to statements downplaying prospects of a sale, say "things are moving quickly behind closed doors".
One insider, who has seen the integration paperwork, said: "To have a document like this in circulation at the two firms points to the fact things are very far down the line with either a sale or acquisition.
"Just look at how close the two firms are in the UK - the two head offices in Coventry and Gaydon are just 25 miles apart and both firms make cars in the UK.
"There are plenty of ways the two companies could save money by working together."
Automotive industry expert Professor David Bailey, of the Birmingham Business School, believes the tie-up could be a good fit for both brands.
He said: "PSA said last month it was interested in acquiring JLR but [its owner] Tata publicly ruled out a sale.
"Tata shareholders' patience may be wearing thin, though, given recent JLR losses. A partial sale may be an option.
"I'm sceptical about JLR being able to go it alone bearing in mind the need for very high research and development spend on new technology given that the auto industry will transform itself in the coming years towards connected, autonomous electric cars.
"At some point JLR may have to collaborate with another auto firm. A partial PSA stake might open that up."
Des Quinn, meanwhile, national officer for automotive sector at Unite the Union, said: "Unite notes Tata’s denial of these unhelpful rumours.
"We will be seeking an urgent clarification from both Jaguar Land Rover and PSA.
"Our paramount concern are the livelihoods of our members who have worked hard to ensure the success of both Jaguar Land Rover and Vauxhall.
"The industry is undergoing a period of major change driven by environmental and technological developments but to succeed it has to take its workforce with it."
BirminghamLive approached JLR for a statement.
A spokesman for Tata said: "As a matter of policy, we do not comment on media speculation.
"But we can confirm there is no truth to these rumours."
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