Rover is refusing to comment on reports that parent company BMW is threatening to axe 2,000 jobs, freeze pay and demand that workers sign tough new flexibility agreements.

Rover is already cutting 1,500 jobs, many at its Longbridge factory in Birmingham, which employs 14,000 of Rover's 40,000 worldwide workforce.

In contrast at Cowley, massive investment has produced a revitalised factory which has already introduced a new system of flexible shifts. Tomorrow the Oxford plant unveils the new Rover 75 executive saloon, a car that sets new standards for Rover in quality, reliability and durability. Sources say the axe is not hanging over any of Rover's factories, but everything else is up for re-negotiation.

BMW wants all Rover workers to sign flexibility agreements. These would allow assembly line staff to move between factories, working overtime for no extra pay at times of heavy production and "banking" the hours against a downturn. It would also allow workers to choose when to take holidays.

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