Angry union leaders have uncovered what they claim is a confidential plan to close the Ryton car factory - dated back to 2003.

On the eve of another meeting between the two sides, the Transport & General Workers' union said the carmaker had also pursued a dual strategy to close the plant while also applying for British Government money.

The document, drawn up by Peugeot management, looked at the impact of closing the firm's factory.

Peugeot has denied any knowledge of the report, which union leaders said was further evidence of the carmaker breaking their word over their decision to close Ryton.

The move comes as the £1 million advertising campaign urging people not to buy Peugeot cars was launched across the country yesterday.

The campaign, which involves newspaper and billboard adverts, is aimed at putting pressure on Peugeot to change its decision over its plans to close Ryton next year with the loss of 2,300 jobs.

Jim O'Boyle, T&G convenor at Ryton, said: "On April 18, when Jean Martin Folz the chief executive made his announcement to cease production at the Ryton plant, by failing to consult with the workforce he broke the law.

"He also broke his word. Folz himself had said he would talk to the unions prior to any decision being made. So much for honesty."

Mr O'Boyle said a confidential report had been commissioned into closing Ryton at the same time the company applied for a government grant to modernise the factory.

He said: "There had been rumours about this plan for a while, but now one of the chaps who was part of the team which wrote it has come forward.

"It is all about the financial impact, sales impact and cost of shutting the Peugeot factory in the UK - and that means Ryton.

"Peugeot has always denied knowledge of this report, then they say it was to do with the end of the D shift which went in April 2004.

"But the D shift was always a short term measure and the end was always agreed with them.

"First the company denies the report and then says it is for something else. It is a crazy situation."

This coupled with Peugeot's decision to decline the £14.6 million DTI grant towards the upgrade of Ryton meant the company was never serious about retaining the site, Mr O'Boyle said.

"In 2002/3 when they applied for the DTI grant, they were getting the factory ready in Slovakia.

"On the balance of probabilities, it's reasonable to believe they were just stalling while they were getting the new factory ready at Trnava."

Jon Goodman, director of communications at Peugeot, said: "This is absolute nonsense. There is no truth in this at all.

"We have been involved in Ryton throughout and have done everything possible to keep the plant viable." ..SUPL: