BMW has denied it has secret plans to close Cowley and shift production of the new Mini to Germany.

The denial comes after days of rumour in the national media about the outright closure of Rover in Britain.

The statement was issued as talks started today (Tuesday) in Munich between BMW and the union-backed Phoenix consortium, led by former Rover group chief executive John Towers, over the future of Rover Cars.

The consortium was given key documents by BMW over the weekend, which it said would allow it to press ahead with a rescue plan.

As talks began between BMW and Phoenix, the original bidder for Rover, venture capitalists Alchemy Partners, said it was "still in touch" with BMW about buying Rover. Uncertainty over the future of Rover led to a spate of media reports hinting that BMW would close the Longbridge plant in Birmingham and pull the plug on Cowley.

But BMW press officer Axel Obermuller said: "We never ever said anything about the closure of Cowley. These are rumours and we deny them."

The threat to jobs caused by the break-up of Rover was the focus of this year's May Day Rally in Oxford.

The event in Bonn Square was organised by trade unionists who invited German car workers and international speakers to show their solidarity. Later, there was a march to South Park.

The threat to 3,000 workers at the Cowley plant has angered Oxford East MP Andrew Smith. He said: "It angers me that extra worry was caused to Cowley workers and their families by totally speculative reports in some national Sunday newspapers that the Cowley car plant was to be sold or closed down."

Trade union officials are planning a mission to Munich to urge BMW to treat the new Phoenix bid seriously. Ken Jackson, general secretary of the Amalgamated Engineering and Electrical Union said: "The next few days are important because for the first time Phoenix will be able to look at the books."