Slow demand has forced Jaguar to implement production cuts at three of its British plants. A formal announcement is expected as early as next week, a report claims.

However, any decisions concerning reduction of the marque's manufacturing capacity is still weeks away, according to a Jaguar spokesman.

"We are just working out the details now on the volume (of the reduction in output in 2004) and how we will implement it, but it will happen," Don Hume told . "What we may have next week is more detail on exactly what we do with production cuts... The real longer-term plan will be known in a few weeks at least," he added.

With Jaguar forming part of Ford's group of luxury brands, the Premier Automotive Group (PAG), Ford president Nick Scheele last week said that no firm decision had been made about cutting output at the Jaguar plants. Scheele did however say that the capacity was too great for the number of cars sold, and a broader strategy would need to be adopted to get Jaguar back to sustained profitability.

Jaguar managers have apparently held talks with union officials about the manufacturer's production and sales. Last month, Ford chief financial officer Don Leclair said Jaguar was weighing on the overall poor performance of PAG and that the parent company was hoping to turn the British marque around.