Luxury car firm Jaguar is to temporarily suspend production of its X-type "Baby Jag" model, it was confirmed yesterday.

The factory, in Halewood, Merseyside, is likely to close for between one and three weeks next month.

David Crisp, Jaguar's corporate affairs manager, said: "We are looking at utilising down time to redress stock levels and achieve a balance between production and stock levels.

"We are reviewing that on an ongoing basis and we will be telling our employees the exact amount later this week.

"It is likely to be somewhere between one and three weeks."

The "down time" will involve all 2,200 shop floor staff at the factory, which last year introduced a number of four-day weeks to slow production.

Mr Crisp said sales had been dented by global economic uncertainty and also by the lack of a diesel X-type.

He said: "We are operating in a very competitive market and there is an increasing uncertainty in global markets. The situation with Iraq does not help."

Last year the Halewood factory produced 75,000 X-type Jaguars.