Jaguar Land Rover's chief Executive David Smith has said more redundacies are inevitable across the motor industry.

Smith told the BBC website the next few months would be "very testing" with a lot of pressure on retailers and suppliers.

He said: "Clearly there will be job losses as we go through this very difficult period."

Although he did not mention whether there would be anymore redundancies at JLR, Smith said managers at the company felt it had a bright future, due to the continued development of new models and greener technology.

Tata Motors, which owns JLR, has said it will put tens of millions into the company, while the firm's managers have been trying to secure Government funding.

Staff at the Jaguar plant in Castle Bromwich are not due to return to work until January 12 after being given an extended holiday because of falling demand for the luxury cars.